‘On top of soft data from the UK recently … these fresh signals of a ‘hard Brexit’ and the risk of another Scottish referendum, enhances our view that the broader outlook for sterling remains negative.’ – IronFX (based on Business Recorder)
Even though the Cable experienced another leg down on Monday, the support cluster around 1.24 managed to limit the losses and keep the pair elevated once again. The 1.24 itself is providing strong psychological support, and with a number of other significant levels this area appears to be impenetrable. The GBP/USD pair would require a strong impetus, a political event or fundamental event, which could provide sufficient bearish momentum for a drop below 1.24. Such an event could occur today; however, from the technical side the Sterling should edge higher, with the 1.25 mark seen retaken. The bearish trend-line is likely to be the ceiling in case of a positive development.
Market sentiment remains bullish at 60%, but the portion of buy orders inched higher from 47 to 51% during the last 24 hours.