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"Going forward there is a risk that the situation in Europe continues to deteriorate, which will have a negative impact on the UK. We could see the pound trading more negatively"
- BTMU (based on Reuters)
Pair's Outlook
Despite 1.5504 proving to be a formidable support level, it has given in and thus allowed further depreciation of the British Pound. The next target of the pair resides at 1.5406/1.5389, being the last obstacle en route to 1.5283/51, where we are supposed to see an inception of a long-term upward tendency. Although it is also worthy to notice that the pair was unable to close above 200 day SMA for more than two months.
Traders' Sentiment
The amounts of bulls and bears are nearly equal in the market, since they constitute 52% and 48% of it, respectively. Consequently, right now the pair is neither overbought nor oversold. The ratio between buy and sell orders, on the other hand, is 43% to 57%, accordingly.
© Dukascopy Bank SA