© Dukascopy Bank SA
"I expect to see more reaction from the downgrade on sterling rather than on gilts. I don't think it came as a total surprise to the market."
- Shahid Ikram, Aviva Investors (based on Bloomberg)
Pair's Outlook
At the moment the Cable is headed towards 1.5164 in order to fill the downside gap. Nevertheless, a close below a key support zone on Friday implies continuation of the sell-off afterwards. Even though the technical studies are either mixed or neutral, this is the most likely scenario. The first strong support will then be encountered at 1.4853.
Traders' Sentiment
Right now the British Pound is one of the most popular currencies, being bought in 67% of cases on average. In its pair with the U.S. Dollar the Sterling is preferred even more—72% of positions are long. The tendency is different with the pending orders, a majority of which (69%) are to sell the Pound.
© Dukascopy Bank SA