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- Commerzbank (based on PoundSterlingLive)
Pair's Outlook
The British currency slumped against the US Dollar on Monday rather unexpectedly, as a March deadline was set for implementing ‘Brexit' yesterday. As a result, the pair slid all the way down to the second support at 1.2845, namely the weekly S2, breaching the falling wedge pattern to the downside. Technical studies today keep giving bearish signals, implying that more weakness could follow. However, in this case the support area around the 1.28 mark is expected to hold, as it is formed by a number of levels, such as the July low, the weekly S3, the monthly S1 and the Bollinger band.
Traders' Sentiment
Bullish market sentiment slightly improved over the day, as 63% of all open positions are now long, compared to 61% previously. Meanwhile, the share of buy orders returned to previous Monday's level of 56%.
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