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"With 8 weeks to go the momentum does seem to be with the 'Remain' campaign. So far it has been a relatively orderly depreciation. There is a fair chance that investors will get a bit more nervous in the run-in."
- Bank of Tokyo-Mitsubishi (based on Reuters)
Pair's Outlook
Disappointment in yesterday's US GDP figures caused the Cable to negate Wednesday's losses, but the immediate resistance in face of the monthly PP and the weekly R2 remained intact. The Sterling is expected to retain its strength, thus, edge higher against the US currency again. Gains are likely to be limited around the 1.4660 mark, with resistance there represented by the weekly R2 and the Bollinger band. In case supply fails to keep the GBP/USD pair from appreciating, price should stabilise near the 1.47 major level, only 200 pips away from the final resistance line. Medium-term technical indicators are now giving mixed signals, suggesting that the down-trend could be reached next month.
Traders' Sentiment
There are 54% of traders being short the Sterling today, the majority of all pending orders, namely 65%, are to sell the British Pound.
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