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- CIBC (based on PoundSterlingLive)
Pair's Outlook
The British Pound plunged against the US Dollar on Friday, amid a strong reading of the US CPI. As a result, the main support area around 1.3140 failed to limit the losses, causing the Cable to drop as low as the 1.30 psychological level. Demand, represented by the 1.30 mark, could cause the pair to rebound, while lack of potential market movers today supports this outlook. Technical studies, however, are giving mixed signals today, unable to confirm the scenario. Consequently, we should not rule out the possibility of the Cable falling deeper down under 1.30, even though it seems unlikely today.
Traders' Sentiment
There are 56% of traders with a positive outlook towards the British currency today, compared to 51% on Friday. At the same time, the number of purchase orders edged up from 41 to 48%.
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