© Dukascopy Bank SA
"If an agreement is not approved by all 28 EU Member States at this summit, sterling would correct sharply against both the dollar and the euro."
- Intesa Bank (based on PoundSterlingLive)
Pair's Outlook
Although the Cable edged closer to the resistance cluster around 1.44, it stabilised at lower at 1.4340. Nonetheless, the bullish momentum prevailed yesterday and could even push the GBP/USD above 1.44 today. Technical indicators also suggest the pair extend its gains, however, a strong impetus is required for the rally to overcome the immediate resistance. Chances of the Pound suffering a loss are higher, which the nearest support, namely the weekly S2 at 1.4255, will doubtfully be able to stop.
Traders' Sentiment
Bulls remain strong, as 61% of traders hold long positions today, compared to 58% on Thursday. At the same time, the portion of orders to acquire the Sterling added 7% points, rising up to 63%.
© Dukascopy Bank SA