© Dukascopy Bank SA
- ING (based on PoundSterlingLive)
Pair's Outlook
For the fourth consecutive day yesterday the American Dollar outperformed the Pound, but with the immediate support cluster remaining intact. The same area, represented by the weekly S1, the monthly PP and the 20-day SMA, keeps providing sufficient support, preventing the Sterling from falling under 1.2370. Consequently, losses are unlikely to exceed 50 pips, although a breach of the immediate support cluster could send the pair all the way down to 1.23 or even lower, as the second target will be the weekly S2 at 1.2225. On the other hand, technical indicators keep giving bullish signals today, suggesting the closest demand area is to trigger a rebound.
Traders' Sentiment
Market sentiment improved further, as 67% of traders are now long the Pound. Meanwhile, there are 65% of pending orders to sell the Sterling.
© Dukascopy Bank SA