‘In view rising geopolitical risk and Brexit uncertainties, we expect limited upside potential in GBPUSD this week.’ – BMO Capital Markets (based on PoundSterlingLive)
The Cable’s upside development yesterday caused the six-month down-trend to be put to the test again, pointing to a possible trend reversal. Technical indicators once more suggest the British Pound is to outperform the Greenback, but even if the resistance line gets fully pierced, there are still obstacles on the Cable’s path, the main one being the 200-day SMA around 1.2634. Nevertheless, in case of another bullish development today gains are unlikely to exceed the 1.26 major level. On the other hand, a set of positive US fundamentals could provide the Buck with a sufficient boost, which would result in the pair’s decline and a solid reconfirmation of the bearish trend-line.
Today only 54% of all open positions are long (previously 55). At the same time, the share of sell orders inched up from 49 to 55%.