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"Sterling has been on the defensive of late but it tried a cautious rebound in the run-up to the data. It looks like sentiment is slightly improving."
- KBC (based on Reuters)
Pair's Outlook
For the time being the monthly S3 level acts as a support, having prevented depreciation of the Sterling yesterday. However, the bears are still considered to have an upper hand over the bulls and thus are expected to push through the demand at 1.5145. At first this should result in a re-test of the support at 1.50 (weekly S1), followed by a decline down to 1.48, namely the 2013 low. Meanwhile, the upside is to be limited by the monthly S2 at 1.53.
Traders' Sentiment
The Pound is getting less popular in the market, as evidenced by a decreasing share of long positions. During the last 24 hours their percentage has fallen from 59 to 57%. The portion of the sell orders declined as well, but from 64 to 55%.
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