© Dukascopy Bank SA
"We expect political concerns surrounding the September 18 Scottish independence referendum to dominate price action in the near term."
- BNP Paribas (based on CNBC)
Pair's Outlook
Although the downside gap after the weekend called for a bullish correction to 1.63, the bears did not loosen the grip and forced the Pound to give up even more ground. GBP/USD is currently testing the monthly S3 at 1.61, but the rate may as well come down to the 2013 Q4 low at 1.5850, where the bulls will have a much better chance of regaining control of the market, as implied by the long-term technical indicators.
Traders' Sentiment
Though the gap between the bulls and bears narrowed, the former are still in a majority over the latter with 63%. As for the orders placed 100 pips from the spot, the difference between the buy (46%) and sell (54%) ones is currently insignificant.
© Dukascopy Bank SA