‘Bulls would be eyeing for a follow through momentum beyond 1.3040-50 immediate hurdle, above which the pair is likely to aim towards reclaiming the 1.3100 handle and head towards testing 1.3125-30 resistance area, marking 38.2% Fibonacci retracement level of post-Brexit downslide.’ – Haresh Menghani (based on FX Street)
Pair’s Outlook
Monday ended with the Sterling remaining completely unchanged against the US Dollar, with the pair attempting to return into its consolidation trend’s borders. In order for this to be confirmed the British Pound is required to close in the red zone today, below the weekly pivot point as well. The second closest support lies only around 1.2930, formed by the 20-day SMA and the weekly S1. However, technical indicators suggest the bullish momentum is likely to prevail; in case it does, the Cable is likely to reach the 1.31 mark within the next two weeks.
Traders’ Sentiment
Traders are still neutral towards the Pound, holding 51% of short and 49% of long positions. At the same time, the share of purchase orders inched down from 60 to 56%.
