‘In our view there are significant headline risks for GBP exchange rates over coming weeks and months.’ – Commonwealth Bank of Australia (based on PoundSterlingLive)
Pair’s Outlook
In spite of strong volatility, the Cable managed to remain relatively unchanged on Wednesday, retaining its position above the monthly PP. The Pound keeps taking advantage of the Buck’s weakness due to lower US Treasury yields, therefore, another positive outcome and a surge beyond 1.25 is possible. The GBP/USD pair has only one solid resistance on its path, namely the cluster around 1.26, which could prevent the Sterling from reaching its target—the 23.60% Fibo at 1.2672. Nevertheless, today’s bullish potential is likely to be very limited, as there are no strong market movers present. Meanwhile, technical studies are also unable to confirm the possibility of a positive outcome.
Traders’ Sentiment
Today 63% of traders are long the Pound (previously 60%), but the share of sell orders is significantly higher, taking up 71% of the market.
