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"Mr Obama might have moved bookies' odds on the UK leaving the EU, and that possibly discourages people from holding onto short sterling positions, but it's been a difficult few weeks for people in the foreign exchange market - it's been very choppy."
- Societe Generale (based on Reuters)
Pair's Outlook
On Monday Pound's volatility was contained by the 1.44 major level from the downside and the resistance trend-line from the upside, while the day ended with a 10-pip rally. Technical studies imply another GBP/USD surge today, but that would mean a breach of the nine-month down-trend earlier than initially anticipated. Furthermore, the down-trend is reinforced by the Bollinger band and the weekly R1, while the second target rests 1.4630, represented by the weekly R2 and the monthly R1. However, in case supply around the down-trend manages to cause the Cable to reverse its bullish momentum, the 100-day SMA is then expected to provide sufficient support at 1.4423.
Traders' Sentiment
Market sentiment is equally divided between bulls and bears, whereas the portion of sell orders edged down from 59 to 55%.
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