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– UOB Group (based on FXStreet)
Pair's Outlook
The British Pound managed to outperform the American Dollar on Wednesday, not only climbing over the 1.23 mark, but also piercing the second resistance level. The Cable, however, keeps gravitating towards the 1.23 level for a few weeks now; therefore, another leg down is expected. Consequently, the Sterling is likely to slump back under 1.23, with focus shifting to the second support level once again, namely the weekly S1. Overall, the 1.22 major level is the main target, where the given pair could receive sufficient support for a rebound or breach it and continue moving towards 1.21, where a tough demand area is located. Technical studies are unable to confirm this scenario.
Traders' Sentiment
Today 61% of traders are bulls, compared to 64% yesterday. At the same time, the share of buy orders dropped down from 62 to 47%.
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