‘Given the positioning, our bias would still be toward a stronger pound over the coming weeks.’ – MUFG (based on Business Recorder)
Pair’s Outlook
The British Pound found support in front of the 55 and 100-day SMAs yesterday, but was unable to fully breach the immediate resistance cluster. Although technical studies keep suggesting the GBP/USD pair is to edge higher and the 55-day SMA is on the verge of crossing the 100-day one to the upside, the potential bullish development is unlikely to exceed the 1.2550 mark. The weekly R1 at 1.2558 is to prevent the Cable from rising further in case bulls do prevail today, but downside risks are still present, with political factors continuing to weigh on the Sterling.
Traders’ Sentiment
There are 58% of traders holding long positions today (previously 59%), whereas 51% of all pending orders are to sell the Pound, compared to 56% on Thursday.
