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- Morgan Stanley (based on PoundSterlingLive)
Pair's Outlook
The Sterling was unable to maintain trade above 1.30 yesterday, but, as expected, managed to find support around the 1.2950 mark. Even though the weekly S1 and the Bollinger band keep providing immediate support, risks are still skewed to the downside. A number of US fundamentals later today could provide the impetus for another leg down, however, a rally is also possible. Technical indicators somewhat support this outlook, as they are no longer giving bearish signals in the daily timeframe. The 1.3050 is likely to be the ceiling in case of a bullish development, while the nearest resistance rests only around 1.3160.
Traders' Sentiment
There are slightly more bulls today, namely 64%, compared to 55% on Thursday. Meanwhile, the portion of orders to sell the Pound returned to its Wednesday's level of 64% (previously 36%).
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