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- Daisuke Karakama, Mizuho Bank (based on Business Recorder)
Pair's Outlook
The British currency was unable to sustain solid growth, as it erased most of its intraday gains against the American Dollar on Wednesday. However, a bearish development now is unlikely, as the Cable is supported by the weekly and the monthly PPs just below today's opening price. Furthermore, technical indicators retain bullish signals, bolstering the possibility of the positive outcome. A rally beyond the 1.25 major level is doubtful, as the psychological major level is also reinforced by the Bollinger band. Overall, due to the breach of the post-Brexit down-trend last week, the Sterling is likely to keep outperforming the Greenback in the short-term.
Traders' Sentiment
Today 65% of traders are long the Pound (previously 63%), whereas the number of sell orders returned to its Monday's level of 60%.
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