- Deutsche Bank (based on Reuters)
On Friday the GBP/USD currency pair pierced the 2015 low, falling to a fresh six-year low, amid strong US NFP figures. From the technical point of view the Cable should undergo a corrective rally today, as the momentum persisted for two weeks straight; however, risks of edging lower persist, with technical studies retaining mixed signals. The monthly S1 at 1.4567 is the nearest resistance, whereas the is providing support around 1.45. Nevertheless, due to a breach of the key support on Friday, the decline might now extend all the way down to the 2010 low at 1.4230.
Today 65% of traders hold long positions (previously 64%), while the number of purchase orders dropped from 69 to 44%.