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"The pound is one of those currencies within the majors, which is more vulnerable to the deterioration in global investor risk sentiment. This is temporary relief."
- Bank of Tokyo-Mitsubishi (based on Bloomberg)
Pair's Outlook
The British currency failed to post significant gains on Monday, as supply at 1.4567 was solid, allowing the Cable to surge only 14 pips. The same resistance, namely the monthly S1, keeps weighing on the pair today, whereas the major level of 1.45 and the Bollinger band are providing immediate support. A stronger cluster is located around the 1.44 mark, but technical studies retain mixed signals, implying trade might remain relatively flat. On the other hand, fundamentals could provide a boost and help the Sterling recover some of the previous losses, ignoring even the second resistance.
Traders' Sentiment
Bulls once again take up 64% of the market, compared to 65% on Monday. The share of sell orders added 1% point, climbing to 57%.
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