"In view rising geopolitical risk and Brexit uncertainties, we expect limited upside potential in GBPUSD this week."
– BMO Capital Markets (based on PoundSterlingLive
On Thursday, the British currency suffered a relatively serious loss against the US Dollar, having almost completely erased Wednesday’s gains. Nevertheless, this decline prolonged the bearish trend-line, while the immediate support, namely the weekly R1, managed to prevent the Cable from falling deeper, thus, causing trade to close above 1.25. No significant development is expected today, mostly due to Easter holidays. However, technical studies keep giving bullish signals, suggesting another leg up is possible. The down-trend is likely to keep the Sterling at bay, but another bearish development would somewhat confirm the Cable’s short-term consolidation trend.
Today 56% of traders are long the Pound (previously 54%), while 52% of all pending orders are to sell the Sterling, down from 55% yesterday.