© Dukascopy Bank SA
"We are still cautious ahead of the vote. Unless the polls really show a decisive Stay lead, rallies in sterling can be seen as an opportunity to sell."
- Swissquote Bank SA (based on Bloomberg)
Pair's Outlook
The British Pound appreciated against the US Dollar for the second day yesterday, with the resistance area around 1.4482 managing to limit the gains. Today the pair is stuck between two clusters, namely the weekly and the monthly PPs from below, and the 20-day SMA and the weekly R1 from above. According to technical studies, however, the Cable is to edge lower, thus, a breach of the immediate support is likely to take place. Consequently, a drop under the 1.44 mark is then imminent, with focus shifting to the second demand area around 1.4340, represented by the 55 and the 100-day SMAs.
Traders' Sentiment
There are 52% of traders being long the Sterling today, compared to 49% on Tuesday. At the same time, the number of orders to sell the British currency declined from 71 to 55%.
© Dukascopy Bank SA