‘Sterling is stuck in a range. It’s very cheap on most measures, but then real yields are very low and the current account deficit is very big.’ – Societe Generale (based on PoundSterlingLive)
The Cable closed with a 40-pip loss on Friday, as mixed US fundamentals were unable to cause a breach in the tough demand cluster around 1.2450. Nevertheless, the GBP/USD pair slipped back under the 1.25 major level, now seeking its way to recover with the help of the same demand area. Technical indicators are in favour of the positive outcome, as they keep giving bullish signals in the daily timeframe. However, we should not rule out the possibility of the pair partially breaching the support cluster, as political factors keep pressuring the British Pound.
There are 59% of traders holding long positions today (previously 60%). Meanwhile, the portion of orders to sell the Pound increased from 53 to 56%.