‘We think that market focus will be on any signals regarding the possibility of a US-UK trade deal. If the two parties send optimistic messages with regards to this prospect, sterling could extend its recent gains.’ – IronFX (based on Business Recorder)
As was anticipated, the demand cluster around 1.2515 limited downside volatility on Friday, also causing the GBP/USD pair to close at 1.2550, namely a 44-pip loss. However, the Cable opened with a small bullish gap today, which resulted in Friday’s losses getting erased. Bears, on the other hand, are refusing to give in, as they continue pushing the Sterling lower. The support area around 1.2515 remains the closest one, where the exchange rate is expected to encounter an obstacle on its journey to the bottom. Meanwhile, technical indicators suggest the Cable could still erase its intraday losses and end the day in the green zone above the 1.26 mark.
Bullish market sentiment remains unchanged, with 62% of traders being long the GBP. The share of sell orders edged up from 49 to 54%.