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- Morgan Stanley (based on Business Recorder)
Pair's Outlook
The Sterling appreciated against the US Dollar for the third consecutive day yesterday, but with each rally being smaller than the preceding one, suggesting that a reversal is due. Stronger US fundamentals could trigger a Cable sell-off today, with the exchange rate returning under the 1.32 major level. However, technical studies are unable to confirm this outlook, as they retain mixed signals, but a possibility certainly exists. In case of a bearish development, the nearest significant support will be the monthly PP at 1.3170. Contrariwise, disappointing US data might only further strengthen the given pair, providing an opportunity to reclaim the 1.33 mark.
Traders' Sentiment
Today 56% of all open positions are short (previously 53%). Meanwhile, the share of sell orders declined from 61 to 56%.
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