© Dukascopy Bank SA
"We are seeing more investors put short sterling trades on as inflation is not going anywhere and the BoE doesn't have to hike rates if doesn't wish to."
- Swissquote Bank (based on Reuters)
Pair's Outlook
The Cable keeps grinding lower, while the monthly S2 at 1.5662 and 2014 low at 1.5592 now represent the limits of the trading range. In case the former level is broken, the bullish momentum will likely fade away as soon as the pair reaches the resistance at 1.5850, where the five-month down-trend coincides with the monthly S1 and 2013 Q4 low. Conversely, if the Pound posts a new minimum, it will imply continuation of the decline towards the monthly S3.
Traders' Sentiment
Just like 24 hours ago, 56% of open positions are long, meaning there are slightly more Sterling-optimists than pessimists. The distribution between the pending orders also did not change—48% to buy and 52% to sell.
© Dukascopy Bank SA