© Dukascopy Bank SA
- IronFx Global (based on Reuters)
Pair's Outlook
The Cable is now well-supported both from the UK and US sides, meaning we may expect an even stronger Pound in the near future. Technically, however, the rally is not as apparent as it is from the fundamental perspective. The pair is facing a notable resistance level at 1.3320, represented by the 23.6% retracement level from the Jun 23-Jul 5 sell-off. At the same time, long-term Sterling appreciation is not supported by the indicators, of which only daily ones suggest more expensive UK currency. Nevertheless, our current target is 1.3385/70.
Traders' Sentiment
Traders are selling the Sterling more than they are buying the currency—the share of shorts increased from 58 to 60%. And they plan to sell even more if the recovery continues, as the percentage of sell orders jumped from 51 to 63%.
© Dukascopy Bank SA