‘Looking at a longer timeframe modelling of the Pound’s fair-value, ING say the GBP/EUR exchange rate is now materially undervalued’ – Gary Howes (based on PoundSterlingLive)
Pair’s Outlook
GBP/USD opened red on the daily chart Thursday morning, setting a downside target at 1.2829 in sight. The area is represented by the daily S1 and is most likely to be up for solid tests today. Because of the proximity to the area, the cross might lack general volatility today in order to respect the area. In case of severe downside volatility around 15:30 GMT when the US unemployment claims data comes out, 1.2762 might be the level more likely to cut the movement with more demand at 1.2729. Upside risks are currently limited to 1.2898.
Traders’ Sentiment
There are 50% of traders holding short positions today (previously 52%), whereas 56% of all pending orders are to acquire the Pound.
