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"The market I suggest is heavily hedged, running with short sterling exposure, and will likely turn buying. I sense there is further upside."
- Neil Jones, Mizuho Bank (based on Business Recorder)
Pair's Outlook
Still being driven by political factors, namely the upcoming EU referendum, the Sterling managed to advance more than 130 pips against the US Dollar yesterday. The weekly R2 succeeded in limiting the gains just on top of the 1.46 major level, which could cause the Cable to undergo a corrective decline. In this case the 20-day SMA and the weekly R1 cluster will be the key support. Technical studies are in favour of the bearish outcome, but a possibility of the GBP/USD currency pair soaring in the wake of positive political or fundamental news exists, which would lead the exchange rate towards the resistance circa 1.4670, namely the Bollinger band and the weekly R3.
Traders' Sentiment
Bears are now in the majority, taking up 53% of the market (previously 48%), whereas the share of purchase orders edged up from 45 to 66%.
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