‘The dollar got some support last week from month-end buying and came off its lows, but overall its heaviness remains unchanged.’ – Daiwa Securities (based on Reuters)
Pair’s Outlook
The British currency’s performance yesterday fell in line with expectations, being that the Pound reconfirmed the down-trend and closed trade between 1.2490 and 1.2480. Another bearish development today is expected, this time with the tough demand cluster around 1.2420 limiting the losses. However, daily technical indicators keep suggesting the Cable is to edge higher, but another retest of the bearish trend-line is anticipated not earlier than on Wednesday, when the upcoming ADP data could weaken the US Dollar in order for the Sterling to climb back above 1.25. Tuesday’s trade is expected to remain in the red zone.
Traders’ Sentiment
There are 56% of traders holding long positions today (previously 53%), whereas 54% of all pending orders are to purchase the Sterling.
