© Dukascopy Bank SA
"Following the latest and decisive break below the 200-DMA (now resistance at $1.6682) we see the bears in full control, shooting for a straight extension towards $1.6394."
- JP Morgan (based on Reuters)
Pair's Outlook
The Cable has already closed the downside gap, but even so it continues to move North. If this bullish tendency, opposed by the daily technical indicators, persists, the Sterling will soon hit the weekly PP and monthly S2. In case these resistances fail to stop the up-move, the supply at 1.67 (May low and weekly R1) will be there to prevent further increase in price and reignite a sell-off that was started two months ago at 1.72.
Traders' Sentiment
There have been no notable changes neither in the distribution between the long (66%) and short (34%) positions, nor between the buy (48%) and sell (52%) orders, despite the Pound currently outperforming the U.S. Dollar.
© Dukascopy Bank SA