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"For many, the idea of a Brexit seems unlikely and any devaluation in sterling should therefore be seen as a temporary opportunity."
- IG (based on WBP Online)
Pair's Outlook
With the return of ‘Brexit' fears the Pound declined against the US Dollar yesterday, also bouncing back from the four-week down-trend. The Cable retains its weakness today, therefore, is likely to drop at least towards the nearest support, namely the weekly PP at 1.4151. However, bears might even push the GBP/USD currency pair even lower, with the 1.41 level getting pierced again. The second target will then be around the 1.40 mark, but the bearish momentum is unlikely to edge below the 1.4050 level, as it prevented the given pair from slumping since the beginning of March. Furthermore, technical studies are bolstering the possibility of the bearish outcome.
Traders' Sentiment
Bullish market sentiment returned to its Tuesday's level of 64%, up from 61% yesterday. The number of buy orders slid from 60 to 45%.
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