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"Sterling's consistent underperformance over the last month is hard to rationalise. For now, we are not prepared to fight the solid negative trend in GBP, though our medium term outlook remains positive."
- RBC (based on Business Recorder)
Pair's Outlook
The Cable edged lower for the sixth time in a row on Tuesday, but without the immediate support cluster getting violated. However, this cluster weakened today and is under the risk of getting pierced, as the Bollinger band inched significantly lower and is now reinforcing the cluster around the 2015 low of 1.4565, which in turn should limit the losses. At the same time, a possibility for the bullish momentum to be regained exists if the US fundamental data disappointing, thus, weakening the US Dollar versus the Pound.
Traders' Sentiment
More traders (62%) retain a positive outlook towards the Sterling today, compared to only 51% on Tuesday. Meanwhile, the portion of orders to acquire the GBP lost 6% points, falling down to 57%.
© Dukascopy Bank SA