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"What I think the currency impact will be is that actually, [investors] will flow to the dollar from every angle, because of course I think the British pound is going to weaken substantially."
- Boris Schlossberg, BK Asset Management (based on CNBC)
Pair's Outlook
The Sterling overperformed on Tuesday, as it surged over the 1.46 level and closed at 1.4635. The bullish reaction was sparked by the TSC report yesterday, but today there is no impetus present that could cause the Cable to edge higher again. Even if bulls manage to push the Pound further up, the tough resistance cluster, represented by the weekly R1, the Bollinger band and the down-trend, should limit the gains. The bearish outcome, however, is more probable, with the nearest support unlikely to be reached, as it is located only at the 1.45 major level.
Traders' Sentiment
Market sentiment remains bearish, now at 56%, compared to 52% on Tuesday. Meanwhile, all pending orders are equally divided between the buy and the sell ones.
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