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"We think the market holds its shortest sterling exposure since 2008 -- that is since the financial crisis."
- BNP Paribas (based on Bloomberg)
Pair's Outlook
On Thursday the Sterling skyrocketed against the US Dollar, meeting resistance only at the third target, namely weekly R1 at 1.4510. However, the Cable closed below the 1.45 major level and is likely to struggle to pierce it again today, as the weekly R1 and the Bollinger band still form a rather strong resistance area around 1.4515. Technical indicators, on the other hand, insist that the immediate resistance is to be pierced. A breach is possible if demand at 1.4446, represented by the monthly R1, is sufficient to cause a rebound, but due to lack of impetus, is unlikely to occur.
Traders' Sentiment
Market sentiment shifted to the bearish side, as 52% of all open positions are now short, compared to 40% yesterday. The number of sell orders also increased, from 55 to 59%.
© Dukascopy Bank SA