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– RBC Capital Markets (based on PoundSterlingLive)
Pair's Outlook
Brexit issues continued to weigh on the British currency on Friday, with even weak US fundamental data being insufficient to help the Cable erase its intraday losses. As a result, the GBP/USD pair dropped more than 100 pips on Friday, sliding back under the 1.23 mark. Moreover, the pair opened with a small bearish gap today, with the downside pressure remaining. The closest area to prevent the Sterling from sliding further down is the 1.22 psychological support, which managed to limit downside volatility so far. The weekly S1 is also bolstering this threshold, while technical indicators do bring some additional support, as they are unable to confirm the possibility of the negative outcome.
Traders' Sentiment
More than three quarters (69%) of all open positions are long today, whereas 61% of all pending orders are to sell the Pound (up from 58%).
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