© Dukascopy Bank SA
HSBC (based on Business Recorder)
Pair's Outlook
The Sterling was unable to preserve the ascending channel pattern last Friday, as it unexpectedly dropped more than 275 pips against the US Dollar, with the decline triggered by the ‘Brexit' polls, showing that majority was voting to leave the EU. With the referendum closing in, the pair remains weak and is likely to suffer another decline today. Demand at the closest support, namely the lower Bollinger band, is insufficient to limit today's losses, whereas the second target lies just under the 1.41 level, represented by the monthly S2 and the weekly S1. The 1.4150 mark could act as a potential interim support, as it was successful in preventing the Cable from edging lower nine weeks ago.
Traders' Sentiment
There are more bulls than bears, as they take up 63% and 37% of the market, respectively, while the share of buy orders slid from 57 to 51%.
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