© Dukascopy Bank SA
- DNB (based on PoundSterlingLive)
Pair's Outlook
The British currency was boosted by the UK's new Prime Minister's comments concerning ‘Brexit', causing the Cable to negate almost all previous week's losses. The political factor was not anticipated, but, nonetheless, the pair successfully reached the 1.25 major level again yesterday, implying more Sterling-buying could be on the way. However, technical studies are now giving mixed signals, suggesting that the recent reversed trend, namely bearish, has a solid chance of prevailing. In this case the main target will still be the cluster circa 1.24, represented by the 20-day SMA, the weekly and the monthly PPs.
Traders' Sentiment
The Pound remains overbought, as 71% of all open positions are still long today. At the same time, there are slightly less orders to sell the Sterling, as their share dropped from 66 to 59% over the day.
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