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- Morgan Stanley (based on Reuters)
Pair's Outlook
Yesterday the BoE unexpectedly left its interest rate unchanged, thus, boosting the British currency. Nevertheless, the Sterling was unable to stabilise above the 1.3430 mark, but still managed to overcome the immediate resistance in face of the weekly R1. Today the Cable finds itself between the weekly R1 as the nearest support and a resistance cluster, formed by the 20-day SMA and the weekly R2 around 1.3550. Another rally would cause the pair to retake the 1.3430 mark, but technical indicators are no longer giving bullish signals, suggesting that a possibility of a decline exists. The Pound now risks falling back under the 1.32 major level in wake of upcoming strong US fundamentals.
Traders' Sentiment
Bulls lost some numbers, as only 57% of traders are long the Sterling (previously 64%). The share of sell orders increased from 52 to 63%.
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