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– RBC Capital Markets (based on PoundSterlingLive)
Pair's Outlook
For the fifth consecutive time the British Pound weakened against the US Dollar on Thursday. The pair managed to retain its positions above the monthly S1, but another spark of GBP-selling is likely to cause the Cable to fall below this support level. Moreover, technical indicators are bolstering the possibility of the negative outcome today, as they are giving bearish signals both in the daily and the weekly timeframes. Any hints of a possible Fed rate hike in March given by Janet Yellen today are to ensure this scenario, but a disappointment could turn the tide for the Cable, causing it to partially recover from a full week of losses.
Traders' Sentiment
Today 58% of traders are long the Pound (previously 59%), whereas 52% of all pending orders are to sell the British currency.
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