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- BMO Capital Markets (based on Reuters)
Pair's Outlook
Even though the support at 1.6782/76 was deemed to be strong and most of the technical indicators were bullish, the Pound took a major hit yesterday. The currency plummeted through the monthly PP, 55-day SMA and, even more importantly, through the long-term up-trend line. Consequently, unless the price rises back above 1.68 in the nearest future, further depreciation of the Sterling seems to be the most likely scenario.
Traders' Sentiment
Just as in EUR/USD, here the share of bullish market participants is also increasing, from 46% yesterday to 49% today. As for the orders, the commands to sell (56%) the British Pound still have an advantage over the ones to purchase (44%) it.
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