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- Commerzbank (based on PoundSterlingLive)
Pair's Outlook
The negative for the British Pound scenario prevailed yesterday, with the wedge pattern broken to the downside and the 1.25 major level also getting crossed. The Cable managed to find support only in front of the 1.24 mark, which is bolstered by the weekly S2. As technical studies keep giving bullish signals today, a correction could occur, but with the 1.25 level most likely remaining intact. On the other hand, a breach of the wedge pattern should be accompanied by more bearish momentum, in which case a slump under 1.24 is to take place, with the next support in sight being the Bollinger band around 1.2343.
Traders' Sentiment
Market sentiment slightly improved over the day, as 61% of all open positions are now long (previously 60%). At the same time, the number of sell orders increased, namely from 60 to 63%.
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