GBPUSD Analysis: Remains on the back foot
|"In coming months, our target for the GBP/USD nonetheless remains for 1.18, especially in the immediate run-up to the activation of Article 50 in March 2017."
- Natixis (based on FXStreet)
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Pair's Outlook
Upon reaching the 1.21 level yesterday, the Sterling recovered from most of its intraday losses, resulting in an overall decline of 45-pip. Risks remain skewed to the downside, with the weekly S1 still acting as the main support at 1.2138, but with the 1.21 mark being the absolute bottom floor. Moreover, not event to trigger substantial volatility is present today, thus, the base case scenario is another small decline, sufficient to reach the weekly S1 support. However, we should not rule out the possibility of a the Pound adding a few pips as well, as technical indicators keep giving mixed signals today. -
Traders' Sentiment
Market sentiment improved over the day, as 71% of all open positions are currently long (previously 65%). The majority of all pending orders, on the other hand, are to sell the Sterling, namely 64% of them.
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