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- Mike Baele, U.S. Bank (based on Reuters)
Pair's Outlook
Although the 23-month down-trend was pierced to the upside on Thursday, the ‘Brexit' poll results caused the Pound to plummet today, registering a 10% drop towards the lowest level in 30 years. At this point the question is whether the Sterling will be able to stabilise above the 1.36 major level or it will remain close to the 30-year low. There are some supports that could still limit the losses, but with the turmoil on the markets, the Cable's behaviour is too unpredictable. Nevertheless, a potential cluster is located around the 1.37 psychological level, formed by the weekly S3 and the 23.60% Fibo, while the overall bottom target is today's low of 1.3230.
Traders' Sentiment
Today 56% of traders are long the British Pound, while 64% of all pending orders are to acquire the Sterling.
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