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"We think a correction back to $1.4050 is on the cards should the Brexit risk premium resurface over the coming days."
- ING (based on Reuters)
Pair's Outlook
As was anticipated, the Sterling weakened against the US Dollar on Tuesday, amid BoE Governor's remarks. Although volatility stretched beyond the immediate support, ultimately, trade closed above it at 1.4217. The outlook remains grim, as technical indicators retain their bearish signals. The Pound is poised for another decline, with the 20-day SMA failing to hold the losses this time. A drop below 1.41 major level is doubtful, as rather strong demand is located around 1.4125, represented by the weekly and the monthly PPs. However, fundamental data could still turn in favour of the Pound and, thus, push the Cable closer towards 1.43.
Traders' Sentiment
Bullish traders' sentiment returned to its Monday's level of 56%. Meanwhile, the number of purchase orders slid from 59 to 39%.
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