GBP/USD remains on the back foot

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The GBP slides this morning against all major currencies after the Times reports that UK Prime Minister Theresa May is preparing for Scotland to potentially call an independence referendum in March to coincide with triggering of Article 50. The referendum may be allowed but only after the UK leaves the EU."  
– Nordea Markets (based on PoundSterlingLive) 


Pair's Outlook 
Friday ended with the Cable erased most of that week's gains, with the bearish momentum persisting through the weekend. The main gauge of such bearish developments were concerns over another possible Scottish independence referendum; Brexit turmoil keeps weighing on the Pound. The GBP/USD pair still faces a tough demand cluster around 1.24, which is expected to limit the losses as it has done through all of February so far. A close below 1.2380 could lead to the Sterling slumping back to 1.20, with political factors driving this weakness. However, a close above still brings hope for a potential recovery towards at least 1.27. 

Traders' Sentiment 
There are 60% of traders holding long positions today, while 53% of all pending orders are to sell the British Pound.
© Dukascopy Bank SA

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