‘The narrowing in the polls has clearly dented sterling’s performance and continues to weigh on the currency, and is probably likely to do so in the near term.’ – Barclays (based on Business Recorder)
Pair’s Outlook
For the third consecutive day yesterday the British currency was able to avoid losses and outperform the US Dollar, continuously retesting the wedge’s support line. The Pound, however, is now expected to allow the Greenback to take the upper hand, which arises the risk of the wedge’s lower boundary getting pierced today. Technical studies are still unable to confirm this possibility, meaning that the wedge’s support could still succeed in limiting the losses; if not, the cluster around 1.2730 is likely to fulfil that task. We should also not rule out the possibility of another leg up, with the 1.2950 handle expected to be the intraday high.
Traders’ Sentiment
There are 51% of traders holding long positions (previously 52%), but 57% of all pending orders are to buy the Sterling, up from 51%.
