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"The pair may remain trapped in a 1.4800-1.5000 range ahead of external cues and with UK February retail sales numbers due later today. We continue to expect a top-heavy tone in the interim, especially amid back ground election concerns."
- OCBC Bank (based on FX Street)
Pair's Outlook
On Wednesday, the British Pound advanced, but not as far as expected. The pair tested the January low; however, it lacked strength to reach resistance at 1.4918 and stopped at 1.4881. The current context of the market suggests a further rally of the Pound, despite the bearish technical indicators. The fundamental factors are presently in play, and they are likely to aid the British currency in getting back up to the January low.
Traders' Sentiment
The gap between the long and short positions widened, as 46% of traders now have a positive outlook towards the Sterling. The number of buy orders also declined, from 49% to 40%.
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