‘There is still scope for further upside in the near term. The long-term downtrend currently stands at approximately 1.35 and it is still possible that we could see that tested before the dollar begins to reassert itself.’ – Charles Stanley (based on PoundSterlingLive)
Pair’s Outlook
The GBP/USD currency pair weakened on Tuesday, resulting in the consolidation trend’s preservation. Consequently, the British Pound should edge lower for another day, with the 1.29 major level likely to be the bottom, despite the 20-day SMA and the weekly S1 forming support around 1.2930. On a slightly larger scale the given pair should be unable to drop under 1.2830, where the consolidation trend’s lower border, the lower Bollinger band, the weekly S2 and the wedge’s support line all form a strong demand cluster. This point is also likely to be able to shift polarity and spark sufficient GBP-buying for a solid surge above 1.30, eventually.
Traders’ Sentiment
Traders retain a neutral outlook towards the Sterling, with 52% of all open positions being short. Still 56% of all orders are to buy the Pound.
