© Dukascopy Bank SA
"Daily and weekly price signals are negative but momentum appears weak. Look for range-trading, with a downside bias."
- Scotiabank (based on FXStreet)
Pair's Outlook
Demand, represented by the 100-day SMA, was sufficient yesterday to trigger a rebound, but with the 1.44 major level barely retaken. The GBP/USD pair remains driven by concerns of the upcoming EU referendum, and increasing support of ‘Bremain' keeps providing the pair with more strength. Technically, the Cable has the potential to reclaim the 1.45 mark, unless the second resistance area around 1.4482 limits the gains. On the other hand, technical indicators retain mixed signals, suggesting that more positive US fundamentals could cause the Sterling to retreat from intraday gains and fall back under 1.44.
Traders' Sentiment
Market sentiment shifted to the bearish side, as 51% of all open positions are now short, compared to 43% on Monday. The share of sell orders keeps growing; they now take up 71% of the market.
© Dukascopy Bank SA