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- Standard Chartered Bank (based on Reuters)
Pair's Outlook
As expected, the currency pair rebounded after approaching the lower bound of the five-week channel. The rally from 1.3230 is also supported by the near-term technicals. The first target is a weekly and monthly R1 cluster, and we expect the price to go all the way to 1.3550 before there is a notable sell-off. Additional resistance is at 1.3650 (monthly R2 and 38.2% Fibo), followed by the 100-day SMA at 1.3740. However, in case of a close beneath 1.3250 the focus will immediately shift to 1.3130, namely the monthly pivot point.
Traders' Sentiment
Sentiment returned to the levels seen five days ago, when the bears had the advantage with the 14 percentage point lead. As for the pending orders, 56% are placed to sell and 44% are placed to buy the Sterling against the Dollar.
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