© Dukascopy Bank SA
"We believe that this [the April pro-Sterling seasonal effect] will merely delay what we see as renewed pressure on the pound heading into the Referendum."
- BAML (based on PoundSterlingLive)
Pair's Outlook
The British Pound plunged against the US Dollar for the third consecutive day yesterday, amid concerns over ‘Brexit' continuing to weigh on the Sterling. The bottom target is now the monthly S1 at 1.4005, which is also bolstered by the Bollinger band today. In case this area gives in, the second demand level at 1.3932, namely the weekly S2, is expected to keep the Pound from falling deeper. Although the bearish scenario is more likely, we should not rule out the possibility of the GBP/USD pair undergoing a bullish correction and, thus, climbing back over the 1.41 psychological level.
Traders' Sentiment
Bullish traders' sentiment returned to its Tuesday's level of 69%, compared to 63% yesterday. At the same time, all pending orders are equally divided between the buy and the sell ones.
© Dukascopy Bank SA