‘There isn’t much going for the dollar right now and the market will be bracing for its further decline.’ – Barclays (based on Reuters)
Even though the GBP/USD pair edged lower on Friday, once again crossing the 1.25 major level to the downside, this decline was just a mere setback in the pair’s bullish trend. Broad USD weakness due to Trump’s failure to bring down Obamacare is allowing the Sterling to continue climbing higher. Today’s intraday high is expected to be the 1.26 handle, with the monthly R1 preventing any attempts to pass beyond this mark. Furthermore, the weekly R1 and the upper Bollinger band around 1.2570 form a relatively strong resistance area as well, which is likely to contribute to limiting the Cable’s rally today. Meanwhile, technical studies are in favour of the positive outcome.
Today 60% of traders hold long positions, barely changed since Friday (61%). The portion of sell orders inched down from 56 to 55%.