‘I think the pressure is on here. We could see a significant move lower (in sterling) provided these uncertainties [the upcoming elections in the UK] in the polls persist.’ – Stephen Innes, OANDA (based on Reuters)
Pair’s Outlook
Yesterday, once again the Cable remained relatively unchanged, experiencing a small decline, which caused the consolidation trend to be preserved for another day. Risks are still skewed to the downside, but with the GBP/USD pair having a strong support at 1.2850, formed by the lower Bollinger band, the consolidation trend’s lower boundary and the broadening rising wedge’s support line. Losses are unlikely to exceed this area, although volatility lower is quite possible. Meanwhile, technical studies are unable to confirm either scenario, as they retain mixed signals.
Traders’ Sentiment
Market sentiment remains relatively neutral, as 52% of all open positions are short and the remaining 48% are short. At the same time, the share of buy orders inched slightly up, namely from 52 to 53%.
