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- Mizuho Securities (based on Reuters)
Pair's Outlook
The Sterling underperformed on Monday, having fallen under the 1.29 mark, but managing to find support at 1.2860. The GBP/USD remains support by the cluster around 1.2850, represented by the Bollinger band, the weekly and the monthly S1s, however, more Pound weakness could cause this area to be pierced. In case of a breach the next target would be the group of supports just under the 1.28 level, with the main one being the down-trend. Even though technical studies are also in favour of the bearish scenario, a possibility of the Cable ending the day in the green zone persists, but with no sufficient impetus for the exchange rate to close above the immediate resistance.
Traders' Sentiment
The number of bulls keeps rising, as 69% of traders hold long positions (previously 67%). The share of buy orders remains unchanged at 57%.
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