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- CIBC World Markets (based on Reuters)
Pair's Outlook
The Sterling took a major hit yesterday, falling nearly 200 pips in one day, as the support represented by the monthly S1 and now former 2014 low failed to nullify the downward momentum. Accordingly, GBP/USD is now set to test another demand area at 1.5862/25. If this cluster of supports is also violated, there is a high chance the price will keep falling towards the monthly S2 at 1.5711, even though the technical indicators are mostly mixed.
Traders' Sentiment
There was a slight increase in the percentage of long positions (from 57 to 59%), but it did not affect the overall situation in the SWFX market—the sentiment is moderately bullish, just like yesterday or five days ago.
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