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- Masashi Murata, BBH (based on Market Watch)
Pair's Outlook
Another hard sell-off of more than 200 pips occurred yesterday, causing the Cable to fall towards the 1.21 major level. The Pound appears to have regained the bullish momentum on the news of a much softer ‘Brexit' scenario. However, the Sterling faces a rather strong resistance on its path around 1.2240, represented by the Bollinger band and the monthly S3, which should prevent the pair from climbing back over the 1.23 level. On the other hand, today's FOMC Minutes could provide sufficient impetus for the 1.23 mark to be reclaimed.
Traders' Sentiment
For two weeks now market sentiment remains bullish, now taking up 63% of the market (previously 61%). Meanwhile, the number of sell orders lost two percentage points, having fallen to a total of 61%.
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