- Capital Economics (based on Bloomberg)
The Cable soared from 1.4230 yesterday and even punched through the resistance line at 1.4360, which was considered to be capable of stopping near-term rallies. Today, however, we are likely to see a downward correction, as the price has just hit not only a trend-line that connects Jan 18 and Jan 28 highs (better observed in the hourly chart), but also monthly S2 and 20-day . GBP/USD might stabilise near 1.4360, but it also would not be surprising for the Sterling to descend down to 1.43 dollars.
A small part of traders decided to square off positions—the percentage of longs fell from 65 to 63%. Meanwhile, there is still no real difference between the buy (46%) and sell (54%) orders.