‘GBP-USD has seen a significant short squeeze from the March lows near 1.21. We expect further marginal upside into the 8 June UK general election and raised our forecast to 1.30 for Q2-2017 (from 1.18 previously).’ – Standard Chartered (based on FXStreet)
Pair’s Outlook
On Monday, the GBP/USD currency pair behaved in accordance with expectations, having edged slightly lower, with the weekly PP limiting the intraday losses. Although the Cable should continue edging lower, the technical indicators suggest a positive outcome is possible, but with the 1.30 mark remaining unmatched. However, due to lack of potential market movers, the Sterling is also capable of trading relatively flat against the US Dollar today, with risks still skewed to the upside. Ultimately, the 1.3120 handle should be the overall ceiling and the 1.2750–the bottom, as these levels mark the borders of the broadening rising wedge pattern, where the Cable is currently traded in.
Traders’ Sentiment
Traders retain a neutral outlook towards the Pound, with 51% of all open positions being short and the other 49% being long.
