- Wells Fargo Securities (based on CNBC)
The Sterling slightly exceeded expectations yesterday, as the corrective decline stretched beyond the immediate support. As a result, the GBP/USD retested the falling wedge's lower border, but today's performance will determine future viability of this pattern. The lower border is also reinforced by the monthly and weekly S1s, suggesting a rebound is due; with the weekly PP at 1.4899 as the nearest resistance, which is likely to be ignored if bulls prevail. However, technical studies retain signals, implying that a breakout from the pattern's trading range is also possible.
Bulls keep losing ground, as 65% of all positions are long (previously 66%). Buy orders are outnumbering the sell ones by only 2% points.