GBP/USD Stays Between Monthly R1 and Weekly PP

GBP/USD Stays Between Monthly R1 and Weekly PP

"Although there were no major data releases last week, the confidence in the U.K.'s economic recovery is boosted by strong revival in the housing market and the falling unemployment rate." - ICICI Bank (based on MarketWatch)

Pair's Outlook

GBP/USD seems to have lost its upward momentum following a test of the monthly R1. Nevertheless, as long as the Cable is underpinned by the January high at 1.6390/41 and the support zone at 1.6242/1.6199, formed by the monthly PP and the down-trend lines, the Sterling should continue to increase in value. The medium-term target in this case will be 1.6745/14.

Traders' Sentiment

The SWFX market participants stay strongly convinced that the Sterling is going to underperform relative tot the U.S. Dollar - 72% of all open on GBP/USD positions are short. Among the pending orders on the pair, the portion of the buy ones near the spot price plunged 16 percentage points to 51%