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- Deltec International Group (based on Bloomberg)
Pair's Outlook
Even though the British currency failed to outperform the American Dollar on Monday, it lost only 13 pips that day, managing to retain its position above the 1.31 mark. The 1.31 level keeps providing psychological support, also bolstered by the 20-day SMA, which could trigger some GBP-buying. Technical indicators are now also in favour of a rally, but the resistance area circa 1.3160, namely the weekly and the monthly PPs, remains strong. In case bulls do prevail, a close at 1.3150 will be the most probable outcome, whereas a bearish development could lead the Cable further down towards 1.3025—where the weekly S1 rests.
Traders' Sentiment
Today there are 53% of traders holding short positions (previously 56%), while the number of purchase orders slid from 55 to 48%.
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