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- Credit Agricole (based on Bloomberg)
Pair's Outlook
As was anticipated, the breach of the support cluster around 1.2375 on Friday caused the British currency to reach the 1.23 major level, despite trade closing at 1.2349. The GBP/USD currency pair remains subject to weakness, even though technical indicators keep giving bullish signals in the daily timeframe. The monthly PP and the 20-day SMA now form immediate resistance, also being bolstered by the weekly pivot point, thus, making it more difficult for bulls to take over the market. On the other hand, the Sterling has been declining through all of the previous week, indicating that a trend reversal could be on the way. In the meantime, the 1.23 mark is seen as the bottom floor.
Traders' Sentiment
Market sentiment keeps strengthening, as 71% of traders are now long the Pound, suggesting the currency might be overbought.
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