‘On top of soft data from the UK recently … these fresh signals of a ‘hard Brexit’ and the risk of another Scottish referendum, enhances our view that the broader outlook for sterling remains negative.’ – IronFX (based on Business Recorder)
Pair’s Outlook
The Cable experienced another decline on Wednesday, with concerns over Brexit continuing to weigh on the British Pound. Another slide down is expected, which would be the fifth consecutive one, with the pair slowly approaching the multi-year low of 1.1947. The closest significant support is the monthly S1, located at 1.2250, although its breach would not be a surprise. As a result, the 1.22 major could soon be pierced, and another step closer to multi-year low made. Meanwhile, technical indicators are bolstering the possibility of the negative outcome, as they keep giving bearish signals today.
Traders’ Sentiment
Bullish traders sentiment remains unchanged at 59% today, but the portion of purchase orders edged higher in the last 24 hours, namely from 43 to 52%.
