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"Sterling was little changed though near three-week peaks against the U.S. dollar. Market positioning on short sterling bets has become a popular play that has helped lend support, albeit tentatively, to the pound."
- Western Union (based on PoundSterlingLive)
Pair's Outlook
The GBP/USD currency pair managed to reach the resistance area around 1.4450, but then erased its intraday gains, with trade closing with a six-pip loss yesterday. Over the past 24 hours the situation for the Cable did not change, as the Sterling remains somewhat supported by the ‘Bremain' confidence. The closest resistance is still represented by the weekly R1 at 1.4339, but the main target is the 1.4450 level, where the 100-day SMA coincides with the upper Bollinger band, both being bolstered by the weekly R2. Meanwhile, technical indicators retain mixed signals, suggesting that a possibility of a decline towards the tough support cluster circa 1.4235 is present.
Traders' Sentiment
Bulls retreated again, as 55% of all open positions are now long. At the same time, the share of purchase orders slid from 57 to 41%.
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