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- IG Securities (based on Reuters)
Pair's Outlook
The Cable retreated from its intraday high after the FOMC Meeting Minutes were released yesterday, but still managed to reclaim the 1.22 level. Nevertheless, technical indicators are now giving bearish signals, implying that the Pound is to weaken further. However, price is expected to remain above 1.21, with the Bollinger band acting as the closest support today. The main target is still the 1.1950 level, the lowest level in more than 30 years, which is also bolstered by the weekly S1. This key support area is expected to trigger a rally, causing the Pound to eventually to climb back towards 1.24.
Traders' Sentiment
There are 65% of traders holding long positions today (previously 63%), while 60% of all pending orders are to sell the Sterling (down from 61%).
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