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"In the current environment however, with investors becoming increasingly worried about the impact of the slowdown in China, concerns over the UK economy and the risk of a 'Brexit' look likely to continue to haunt sterling."
- HiFX (based on Business Recorder)
Pair's Outlook
The Sterling's recent rally against the US Dollar was reduced to zero, with the weekly S1 ultimately holding the gains at 1.4414. The pair remains stuck between the weekly S1 and the monthly S2, while disappointments in today's US fundamentals could cause a breakout to the upside. The second level to limit the losses lies at 1.4567, but it will be difficult to reach. Contrariwise, the Greenback could receive another boost and push the Pound even lower towards the 2010 low at 1.4230, despite the monthly S1 being able to keep the Cable from declining through all of the week.
Traders' Sentiment
Both long positions and purchase orders remain unchanged today, taking up 63% and 43% of the market, respectively.
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