‘We continue to highlight GBP’s vulnerability to a break above 1.25, given the extended bearish positioning and the potential for adjustment.’ – Scotiabank (based on FXStreet)
The US Dollar managed to outperform the British currency, but failed to carry out the anticipated retest of the support cluster around 1.2420. With today’s US NFP data being the main market mover, the Cable has the opportunity to reconfirm the bearish trend-line at 1.2549 and possibly even pierce it should the employment figures disappoint. Technical indicators are also in favour of the positive outcome; however, we should not rule out the possibility of the NFP data surprising to the upside, in which case the substantial demand area circa 1.2420 could easily be pierced.
For the fifth consecutive day market sentiment improved, as now 59% of all open positions are long. Meanwhile, all pending orders are equally divided between the buy and the sell ones.