‘There may well be a case to say investors are still looking for the weaker aspect of data and focusing on that – the Brexit trade is an easy one to hang on now, as is the euro political risk trade … over the last couple of days.’ – BMO Capital Markets (based on Business Recorder)
The British Pound remained rather muted against the US Dollar during the last three days, with the tough support area circa 1.24 keeping the pair afloat. Even though there is some room for another leg down, same as yesterday, assuming the weekly pivot point at 1.2449 manages to hold the Cable—a positive development would not be a surprise. However, the main target, namely the resistance around 1.25, is unlikely to be breached due to lack of potential market movers. Meanwhile, technical indicators also keep giving bullish signals in the daily timeframe, unable to confirm the possibility of the positive outcome.
There are 57% of traders being long the Sterling today, whereas 53% of all pending orders are to sell the British currency.