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- Societe Generale (based on PoundSterlingLive)
Pair's Outlook
Still being backed by BoE Carney's comments, the British currency successfully outperformed the US Dollar on Wednesday. However, the monthly S3 once again prevented the Cable from rising further up, so unless today's fundamentals are in the Pound's favour, the pair is likely to bounce back down. Technical indicators are unable to confirm any scenario today, thus, a decline towards the weekly S1 at 1.2138 is possible. On the other hand, if the monthly S3 gives in, the upside limit is seen around 1.2350, namely between the weekly R1 and the 20-day SMA resistance area.
Traders' Sentiment
Market sentiment remains strongly bullish, with 68% of all open positions being long today (previously 71%). At the same time, the number of orders to sell the Sterling declined from 64 to 58%.
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