GBP/USD struggles to maintain trade above 1.42
"The attack in Brussels, on the back of terrorist attacks in Turkey over the weekend ... is bad news for the U.K., because it plays into the hands of those who want to leave, thinking that somehow if they leave they're safe."
- Brown Brothers Harriman (based on CNBC)
Pair's Outlook
Upon retaking the 1.44 psychological level on Tuesday, the Pound suddenly made a U-turn and slumped to 1.42, amid the events in Brussels. The Sterling now faces a support cluster around 1.4170, represented by the 20-day SMA, the weekly S1 and the monthly PP. Technically, we should see the GBP/USD currency pair undergo a correction today and attempt to reach the 1.43 mark again, but there is still sufficient room to a decline towards the immediate support cluster's last level—the monthly PP at 1.4141. This PP held the Sterling from edging lower against the Buck since the beginning of the month and is likely to keep the Cable afloat if bears take over the market.
Traders' Sentiment
Bullish sentiment grew stronger, as 63% of traders are now long the Pound (previously 58%). The portion of buy orders slid from 60 to 56%.
- Brown Brothers Harriman (based on CNBC)
Pair's Outlook
Upon retaking the 1.44 psychological level on Tuesday, the Pound suddenly made a U-turn and slumped to 1.42, amid the events in Brussels. The Sterling now faces a support cluster around 1.4170, represented by the 20-day SMA, the weekly S1 and the monthly PP. Technically, we should see the GBP/USD currency pair undergo a correction today and attempt to reach the 1.43 mark again, but there is still sufficient room to a decline towards the immediate support cluster's last level—the monthly PP at 1.4141. This PP held the Sterling from edging lower against the Buck since the beginning of the month and is likely to keep the Cable afloat if bears take over the market.
Traders' Sentiment
Bullish sentiment grew stronger, as 63% of traders are now long the Pound (previously 58%). The portion of buy orders slid from 60 to 56%.