© Dukascopy Bank SA
"We tend to think that sterling looks too strong given the risks ahead of the Brexit referendum.
Sterling/dollar should struggle to break $1.4570/80."
- ING (based on Business Recorder)
Pair's Outlook
The Sterling weakened against the US Dollar for the third consecutive time yesterday, but with the pair losing only 13 pips. During the previous slumps the Cable was edging lower less and less, suggesting that a possible trend reversal is at hand. Technical indicators are now giving distinctly bullish signals in the short-term, bolstering the possibility of the positive outcome. Consequently, the Sterling could even climb over the immediate resistance, namely the weekly PP, which is located at 1.4563. Despite the bullish outlook, a positive surprise in the US NFP data today could also cause the pair to plunge under the 1.44 psychological level.
Traders' Sentiment
Bulls keep growing stronger, as 61% of traders are now long the Pound. At the same time, the share of purchase orders surged from 48 to 53%.
© Dukascopy Bank SA