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- Berenberg Bank (based on Bloomberg)
Pair's Outlook
Tuesday's rally failed to reach the weekly S1, instead the Sterling returned back to the 2012 highs. This level is strengthened by the 100-day SMA and the monthly S1, meaning this support may survive several more days. However, once it is broken, the exchange rate will be expected to target 1.5923/14, the current location of the 200-day SMA and the monthly S3.
Traders' Sentiment
While traders are becoming more bullish towards the U.S. Dollar in the EUR/USD pair, they are much less sure the currency will be able to gain value in GBP/USD, where 57% of positions are long and 43% are short. Concerning orders, 56% of them are to acquire the British Pound.
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