GBP/USD in tight range between 1.42 and 1.43
"While we believe the risk of an actual EU exit is not large, we acknowledge that the uncertainty surrounding the vote might negatively affect business confidence, in turn delaying private investments in the country."
- Pioneer Investments (based on Business Recorder)
Pair's Outlook
Yesterday's ECB's rate decision had an impact on other currency pairs, such as the GBP/USD. The Cable recovered from its intraday low and ended the day with a 66-pip rally, closing near the 1.43 major level. The Sterling appears to be consolidating against the US Dollar this week, with the 1.42 psychological barrier supporting the pair from the downside, also bolstered by the 20-day SMA, the monthly and the weekly PPs, while the upper boundary is represented by the 1.43 mark. Consequently, the bearish momentum should prevail today, although a surge towards the immediate resistance, namely the 55-day SMA and the weekly R1 around 1.4370 is possible.
Traders' Sentiment
Bulls lost some numbers over the day, as 58% of all open positions are now long. The share of buy orders, however, inched up from 41 to 59%.
- Pioneer Investments (based on Business Recorder)
Pair's Outlook
Yesterday's ECB's rate decision had an impact on other currency pairs, such as the GBP/USD. The Cable recovered from its intraday low and ended the day with a 66-pip rally, closing near the 1.43 major level. The Sterling appears to be consolidating against the US Dollar this week, with the 1.42 psychological barrier supporting the pair from the downside, also bolstered by the 20-day SMA, the monthly and the weekly PPs, while the upper boundary is represented by the 1.43 mark. Consequently, the bearish momentum should prevail today, although a surge towards the immediate resistance, namely the 55-day SMA and the weekly R1 around 1.4370 is possible.
Traders' Sentiment
Bulls lost some numbers over the day, as 58% of all open positions are now long. The share of buy orders, however, inched up from 41 to 59%.