‘The recent negative undertone has eased with the sharp bounce and this pair has likely moved into a 1.2400/1.2580 consolidation range. In other words, the overall neutral phase that started earlier this month is still intact.’ – UOB Group (based on FXStreet)
Despite strong downside volatility, the GBP/USD pair managed to recover from its intraday low and even close trade in the green zone. The Cable now faces the 1.25 resistance, which is bolstered by the 20-day SMA and the weekly R1. However, a breach of this area does not ensure further bullish momentum is to follow; for that the Sterling is required to climb over the 1.2540 level, as that would slightly reassure the current three-week down-trend is to come to an end. A strong support area just above 1.24 is likely to help the British currency remain afloat, as it has been doing for a whole a month now.
There are 58% of traders being long the Pound today, compared to 59% on Tuesday. At the same time, the share of sell orders returned to its Monday’s level of 55% (down from 58% previously).