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- Toshihiko Sakai, Mitsubishi UFJ Trust and Banking (based on Market Watch)
Pair's Outlook
The British currency slid back under 1.27 on Tuesday, after having appreciated against the US Dollar for five consecutive sessions. The given correction could now last until the broadening rising wedge's support line around the 1.25 mark is reached. This support line is also reinforced by the monthly PP, the weekly S1, the 20 and the 55-day SMAs, making this area even harder to pierce, suggesting the pattern is to be preserved. However, the Cable is unlikely to drop so low today, as the immediate support cluster is expected if not stop the decline completely, then at least to slow it down.
Traders' Sentiment
Once again 59% of traders have a positive outlook towards the British Pound, compared to 56% yesterday. Meanwhile, 64% of all pending orders are to sell the Sterling, up from 61% on Tuesday.
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