- ANZ (based on CNBC)
The Sterling suffered a rather serious decline against the US Dollar on Tuesday, as fears of a ‘Brexit' returned. A strong demand area in face of the monthly PP managed to prevent the Cable from edging deeper. The pair faces the same support today, which is also reinforced by the 20-day . In case of a breach the second area to limit the losses is located at 1.40 psychological level, also bolstered by the weekly S2. Meanwhile, technical studies are giving mixed signals, implying that a possibility of the Pound returning back above 1.43 exists, but the weekly PP and the 55-day around 1.4320 are expected to provide sufficient resistance if a rally occurs.
Market sentiment barely changed, as 65% of traders are still long the GBP (previously 66%), but the share of buy orders slid from 61 to 56%.