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- Commerzbank (based on FXStreet)
Pair's Outlook
The monthly S3 appeared to be too difficult to overcome, causing the Sterling to fall 65 pips at the end of the previous week. The Cable remains stuck in a tight range around the 1.22 major level, with the 1.21 mark acting as the bottom floor and the weekly S3 at 1.2254 as the ceiling, which is now also reinforced by the weekly pivot point. The pair keeps gravitating towards the 1.22 level, thus, a small rally today is the anticipated outcome. However, technical indicators retain mixed signals, therefore, a possibility of an approximately 35-pip decline exists.
Traders' Sentiment
Today 64% of traders are long the British Pound, in comparison to 63% on Friday. Meanwhile, the portion of orders to sell the Sterling inched up from 54 to 56%.
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