‘The pound’s euphoric rally on last week’s snap election news could be at further risk if the market loses confidence in the election’s ability to make for easier negotiations with the EU.’ – LMAX (based on Business Recorder)
Pair’s Outlook
On Tuesday, the Cable behaved in accordance with expectations, having appreciating, but with the 1.2850 psychological level limiting the intraday gains. Consequently, since the pair reached its consolidation trend’s upper border, a bearish development is now likely to prevail. The 1.2750 mark is the intraday bottom floor, but the exchange rate could also struggle moving below 1.2780. However, technical indicators are unable to confirm the possibility of the negative, as they keep giving bullish signals in the daily timeframe. As a result, we should not rule out the chance of the Pound breaking the 1.2850 handle and reclaiming the 1.29 mark, although this scenario is highly unlikely.
Traders’ Sentiment
Traders remain relatively neutral, with 51% of all open positions being long and the other 49% being short the Sterling against the US Dollar.
