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"In any fairly constituted international tribunal, Gibraltar will win game, set and match."
- Gibraltar's chief minister (based on Reuters)
Pair's Outlook
Yesterdays bounce from 1.55 strengthened further bullish expectations on the pair. At the moment it is hovering between the 1.56 and weekly R1. However, medium and long term technicals give rather clear indications that the pair continues to face significant downside risk. Short term rallies should be capped by the 6 month high at 1.575; dips should find support with 1.546.
Traders' Sentiment
Pound reaching new relative high yesterday causes additional 5% of traders become bearish in anticipation of a price correction. Short traders at the moment account for 72% of all market participants. Distribution of pending orders remains in favour of the bears as well (66%).
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