‘The narrowing in the polls has clearly dented sterling’s performance and continues to weigh on the currency, and is probably likely to do so in the near term.’ – Barclays (based on Business Recorder)
Pair’s Outlook
Thursday ended with the Cable remaining flat, despite downside volatility initially prevailing. The 1.29 major level has proven to be a might foe, as the Pound struggled to climb over it through all of the week. With today’s US NFP data due, the GBP/USD pair could breach the broadening rising wedge’s support line, leaving the 1.28 psychological demand level to limit the losses. However, technical studies are still unable to confirm this possibility, meaning there is a chance the pair could burst through the 1.29 mark, thus, prolonging the wedge pattern.
Traders’ Sentiment
Market sentiment is still neutral, as 51% of all open positions are long. At the same time, the number of orders to acquire the Sterling dropped from 57 to 53%.
