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- BNP Paribas (based on Reuters)
Pair's Outlook
The immediate outlook on the Cable is bearish, as the currency pair once again failed to break through supply at 1.33 last week. The exchange rate is thus likely to fall some 250 pips before the bulls will have a good opportunity to take control of the price. The floor is seen as far as 1.28, where the lower bound of the channel developing in the weekly time frame merges with the July low, which was reached as a result of the sell-off initiated by the ‘Brexit' vote. Meanwhile, only weekly technical indicators are mostly bearish.
Traders' Sentiment
At the same time, market sentiment does not confirm a negative bias towards the Sterling, as the amounts of long and short positions are nearly equal. Nevertheless, the share of sell orders is considerably higher than the share of buy orders—63 and 37% respectively.
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