‘The old floor at $1.24 now becomes important resistance, though, before it, we suspect a recovery from the current stretched condition will be more limited.’ – BBH (based on FXStreet)
The bearish momentum prevailed on Monday, causing the GBP/USD pair to fall under the monthly S1, thus, opening the door for new lows. In case bears continue pushing the British Pound further down, the lower Bollinger band, which is the closest support today, is expected to be ignored. As a result, the Cable risks piercing the 1.22 threshold, with attention then turning to the second significant support, namely the monthly S2 at 1.2119. However, the 1.2150 mark should also be considered as an interim demand level, as it showed some potential previously. Meanwhile, technical indicators keep giving mixed signals, unable to provide any clear sense of direction.
There are 62% of open long positions today (previously 61%), whereas 60% of 60% of all pending orders are to purchase the Sterling.