‘Any declines are now classified as corrective and should be well supported ahead of 1.2500 in favour of a higher low and bullish resumption.’ – LMAX Exchange (based on PoundSterlingLive)
Pair’s Outlook
The Sterling suffered from the election polls, which showed that Theresa May is barely ahead, thus, resulting in a breach of the strong support cluster around 1.2850. Although a technical correction after such a decline is likely, downside risks remain present as well. The 1.28 psychologic level is what keeps keeping the GBP/USD pair afloat at the moment, with the next strong demand area located only around 1.27, formed by the weekly S1, the 55-day SMA and the 23.60% Fibo. Meanwhile, technical indicators are in favour of the positive outcome, in which case the nearest significant resistance will be the weekly pivot point at 1.2977, but such a strong recovery is unlikely.
Traders’ Sentiment
Bulls are now slightly outnumbering the bears, as 51% of all open positions are now long and the remaining 49% are short.
