© Dukascopy Bank SA
- Pioneer Investments (based on Business Recorder)
Pair's Outlook
For the second day yesterday the British currency weakened significantly more than anticipated, completely breaching the post-Brexit consolidation trend, as even the support cluster around the July low of 1.2798 was unable to limit the losses. According to technical studies the Cable is to continue sliding down today, with the main target being the monthly S2 at 1.2585. On the other hand, a poor reading of US fundamentals today could cause the pair to undergo a correction, possibly even climbing back over the 1.28 level. The base case scenario, however, is another slump towards 1.2650.
Traders' Sentiment
There are 64% of all open positions being long today (previously 63%), whereas the number of orders to purchase the Sterling dropped down from 56 to 47%.
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