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- Morgan Stanley (based on Business Recorder)
Pair's Outlook
Even poor US Building Permits yesterday could not provide the GBP/USD with sufficient strength to keep the pair from falling back under 1.30. With the breach of this major level the Cable falls under the risk of edging lower towards the key support area around 1.2885. This level is important, as not only the weekly S1 coincides there with the monthly one, but also with the support line, which kept the Sterling elevated since its sharp post-Brexit slump. Technically, a decline should be limited by this cluster of supports today; not only that, but an anticipated Fed's dovish statement could also be a catalyst for the exchange rate to negate Tuesday's losses.
Traders' Sentiment
Bulls are barely outnumbering the bears, as 53% of all open positions are long. The portion of buy orders, however, surged from 39 to 65%.
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