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- Commerzbank (based on FXStreet)
Pair's Outlook
Monday ended with the Cable edging only 27 pips higher, but with risks still skewed to the downside. The pair remains located under a strong resistance area, represented by the weekly PP and the monthly S3, which together are likely to cause the exchange rate move lower. Even though technical indicators support this scenario, we should not rule out the possibility of an approximately 50-pip rally, thus, another retest of the immediate resistance area. The base case scenario, however, is a drop towards the 1.21 major level, unless fundamental data turns the odds in Sterling's favour, in which case the Pound will have the potential to reclaim 1.23 level.
Traders' Sentiment
Today 66% of traders hold long positions (previously 64%), whereas the number of sell orders surged once again, namely from 56 to 61%.
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