‘The improved optimism regarding the macro fundamentals are supportive of a stronger US dollar in the current circumstances.’ – London Capital Group (based on Investing.com)
The Cable remained completely flat on Wednesday, although some upside volatility was registered. The Pound has been consolidating against the US Dollar for quite some time now, but with the bullish momentum moderately prevailing. According to technical studies, the Sterling should continue outperforming the US Dollar, with demand at 1.2934, represented by the weekly PP, remains sufficient to keep the pair afloat, and no resistance is preventing the exchange rate from climbing over the 1.30 level. The overall ceiling for now is the area sirca 1.3130, where a number of supply levels coincide with the ascending channel’s upper boundary.
Market sentiment remains unchanged, with 51% of all open positions being short for the fifth consecutive time.