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– Bank of Tokyo-Mitsubishi UFJ (based on Reuters)
Pair's Outlook
The Cable is currently trading right at the apex of the symmetrical triangle it has been forming since June 26. The pattern itself implies a bearish breakout due to a strongly negative reaction to the results of the ‘Brexit' vote. The downward bias is also reinforced by the technical indicators. However, the breakout will primarily depend on the upcoming news releases rather than on the technicals, of which we will have plenty this week. More ambiguity is added by the fact that the pair has already reached the lower bound of the multi-year descending channel, which in turn implies a bullish correction to 1.40.
Traders' Sentiment
The market remains undecided, as there is still no distinguishable difference between the numbers of bulls and bears in the market—51 and 49%, respectively.
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