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"We don't think sterling has much more downside from these levels and we remain biased on dips, because ultimately political uncertainty will get resolved; ultimately it will be growth prospects that drive the currency."
- Credit Agricole (based on Reuters)
Pair's Outlook
The Sterling stopped moving a day before the MPC rate statement, and for now it is underpinned by the monthly S1 level. However, this support will be unable to halt the currency from moving lower, in case the central bank is dovish. On the other hand, this year's low at 1.6250 may have a good chance to prevent further depreciation of the Pound and instead help it to start realising the bullish outlook implied by the monthly technical indicators.
Traders' Sentiment
Though the bulls are still in a majority, their advantage over the bears declined from 32 to 26 percentage points. Concerning the orders, unlike the situation 24 hours ago, there is no difference between the amounts of buy (53%) and sell (47%) commands.
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