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- IG Securities (based on Reuters)
Pair's Outlook
The result of EU referendum polls caused the Sterling to plunge dramatically on Friday, reaching a 30-year low. However, as was expected, the Cable managed to stabilise above the 1.36 major level, but downward pressure remains. Moreover, the pair opened with a bearish gap today, and is likely to continue sliding down. The first support will be the current June low at 1.3230, namely Brexit's low, while the second support rests only around 1.2942, represented by the weekly S1. Furthermore, technical indicators are giving bearish signals in the weekly timeframe, suggesting the Pound is to edge lower by week's end.
Traders' Sentiment
Market sentiment remains bearish at 53% (previously 54%), whereas 53% of all pending orders are to sell the British currency.
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