© Dukascopy Bank SA
"Sterling's direction is "broadly moving sideways but if we get better U.S. numbers out over the next couple of weeks, that's going to be more of a driver - how much dollar enthusiasm there is out there."
- HSBC (based on Bloomberg)
Pair's Outlook
As implied by the near-term technical studies, the British Pound continues to cede ground against the Dollar. The closest support that may bring relief is 1.6768/33, which mainly consists of the monthly S1 and 200-day SMA. A little lower, standing next to 1.67, is the May low, which is also likely to interfere and make it difficult for the bears to push the price South. Accordingly, a risk of a pull-back is presently increasing.
Traders' Sentiment
The percentage of long positions went up from 59% to 62%, reflecting a decrease in the vale of the Sterling. At the same time the portion of the buy orders soared from 58% to 71%, meaning the bulls are likely to become even more active in the nearest future.
© Dukascopy Bank SA