‘In view rising geopolitical risk and Brexit uncertainties, we expect limited upside potential in GBPUSD this week.’ – BMO Capital Markets (based on PoundSterlingLive)
A set of upbeat inflation data on Tuesday provided the Sterling with a sufficient boost to once again stabilise above the cluster of important levels circa 1.2330. However, the rally was not strong enough for the Cable to climb over the 1.25 mark, suggesting that another U-turn today is possible, despite technical indicators giving different signals. A surge of more than 50 pips would cause the six-month down-trend to be breached, with focus then shifting to the second strong resistance, namely the cluster around 1.2630. However, should the GBP/USD pair continue to consolidate, the 1.24 major level would become open for exposure once again.
There are 55% of traders being long the Pound today (previously 57%), whereas 51% of all pending orders are to acquire the British currency.