‘There are still geopolitical concerns, such as the Syrian situation, in the background, and there are no fresh incentives or reasons to buy the dollar.’ – Sony Financial Holdings (based on Reuters)
Pair’s Outlook
The British currency was able to outperform the US Dollar on Monday, but with gains limited by the tough resistance cluster around 1.2425. This cluster could prevent the Cable from recovering further, with the exchange rate once again slipped under the 1.24 mark, paving its way towards the support area just above 1.23, represented by the weekly S1 and the lower Bollinger band. However, technical indicators are unable to confirm the possibility of the bearish outcome today, thus, there is a chance the Sterling could post gains, but the second supply area, namely the weekly R1 at 1.25, is to remain out of reach.
Traders’ Sentiment
There are 57% of traders being long the British Pound today, compared to 61% yesterday. At the same time, the portion of orders to sell the Sterling inched higher, namely from 53 to 56%.
