‘Given the positioning, our bias would still be toward a stronger pound over the coming weeks.’ – MUFG (based on Business Recorder)
The GBP/USD currency pair managed to avoid serious losses on Wednesday, as the weekly PP, the 55 and the 100-day SMAs provided sufficient support. The Cable remains on the back foot, but the immediate demand cluster could still keep the exchange rate above the 1.24 mark today. Technical studies in the daily timeframe support this outlook, but given the latest developments, more downside is expected. On the other hand, from the technical perspective there might soon be a relatively strong purchase signal, which implies the Pound could strengthen against the Buck and erase all this week’s losses.
There are 59% of traders holding long positions today (previously 57%). At the same time, the share of sell orders inched up from 55 to 56%.