‘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 GBP/USD pair behaved in accordance with expectations yesterday, having recovered only half way towards the weekly pivot point. A failure to post solid gains is likely to result in more weakness today, with the monthly PP at 1.2762 being the main target. The Cable has another relatively strong support area around the 1.27 mark, but only another disappointing political event is to have sufficient strength for a leg that far down. On the other hand, the wedge’s lower boundary could still have the strength to trigger a rebound, but technical indicators are unable to confirm this possibility, as they turned from bullish to mixed.
Traders’ Sentiment
There are 52% of traders being long the Sterling today (previously 51%), while the share of purchase orders slid from 53 to 51%.
