- Morgan Stanley (based on Reuters)
Yesterday disappointment in UK's outlook pushed the GBP/USD significantly lower, with the four-week up-trend failing to hold the losses. The Sterling is expected to recover after such a gradual fall, as technical indicators are once again giving signals. Lower unemployment is to boost the Cable, with the closest area to limit the gains located only around 1.4385. However, since the GBP/USD is on the backfoot, we might also observe another slump beyond the immediate support of 1.4255, especially if the fundamental data is in favour of the American Dollar.
The share of long positions now takes up 63% of the market (previously 60%), while the buy order portion slid from 65 to 52%.