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– FXTM (based on Business Recorder)
Pair's Outlook
The Sterling overperformed on Monday, having climbed over the 1.25 handle, even piercing the second resistance cluster at 1.2515. Tuesday is rather sensitive day, as a rather important question concerning Brexit is to be dealt with. As a result, the Cable risks falling back under 1.24, with the possibility of the 1.21 mark even being reached, where the monthly S1 coincides with the weekly one. However, a positive development is also possible, with the 1.2750 level expected to be the ceiling, assuming the strong resistance around 1.2680, formed by the 23.60% Fibo, the weekly R2 and the monthly R1, is breached. Technical studies are unable to confirm either scenario.
Traders' Sentiment
Bulls retreated again, as 66% of traders are now long the Pound (previously 68%). The share of sell orders inched up from 52 to 54%.
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