‘The improved optimism regarding the macro fundamentals are supportive of a stronger US dollar in the current circumstances.’ – London Capital Group (based on Investing.com)
Pair’s outlook
The market was indecisive on Tuesday due to lack of strong movers. The Pound found support at the 200-hour SMA mid-day, giving the confirmation that upside risks should prevail in this trading session. The pair may find resistance at 1.2982/90 by the lower boundary of the broadening wedge apparent on the hourly chart. This is the likely upper limit for today, as the closest resistance on the daily chart formed by the weekly R1 at 1.3037 may be too far to reach. Strong fundamentals for the Dollar may weaken the rate or even reverse it to the downside. In this case, the price should close in the 1.2938/1.2882 territory.
Traders’ sentiment
Market sentiment has remained unchanged, as 51% of traders are holding short positions. Meanwhile, 58% of pending orders are to buy the Pound.
