‘There’s significant resistance for GBP/USD between 1.25 and 1.2630.’ – BK Asset Management (based on PoundSterlingLive)
Pair’s Outlook
Monday ended with the British Pound outperforming the US Dollar, which resulted in the six-month bearish trend-line getting pierced. The Cable, however, now faces another strong resistance, namely the cluster around 1.2610, represented by the upper Bollinger band, the weekly R1 and the 200-day SMA. Technical indicators keep pointing to another potential rally today, in which case the Sterling would have the opportunity to reclaim 1.26. Nevertheless, there is no impetus present that could help the GBP/USD pair overcome the 200-day SMA at 1.2626, not yet at least.
Traders’ Sentiment
Market sentiment reached a perfect equilibrium today, but the portion of orders to sell the Pound remained unchanged, still taking up 51% of the market.
