Morning Forex Technical - GBP/USD consolidates at 1.5432/23

'There's clear evidence that growth is here [in the UK], looking at economic surveys, inflation growth and house-price inflation.' - ING Groep NV (based on Bloomberg)

Pair's Outlook

Yesterday the pair demonstrated propensity to rise. Even though the body of the previous bar is small and indicates that the Sterling depreciated, there is a long spike to the upside. Therefore we view 1.5432/23 as a temporary floor for the price action in the medium term, before the Cable challenges a key level at 1.5762/50. However, in order to arrive there, the resistance at 1.5468 needs to be overcome first.

Traders' Sentiment

A recent contraction in the amount of bearish positions opened in the GBP/USD market has been just reversed, since the portion of those expecting the Pound to underperform relative to the greenback increased back to 66%. At the same time the difference between the buy (44%) and sell orders (56%) is slightly less distinct.

IMOH, Clement I.
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