- Rabobank (based on CNBC)
The British currency experienced a rather sharp sell-off yesterday, edging below the six-week up-trend, with trade closing at 1.4162. The Sterling risks falling deeper down today, depending on the FOMC meeting results. Technically, a drop beyond the 1.41 psychological level is unlikely to occur. The weekly S1 and the also form a strong demand area around 1.4070, in case bears pull the exchange rate further down. According to technical indicators, the Pound has the potential to negate some of Tuesday's losses, while the resistance cluster around 1.4270 is to prevent the Cable from appreciating if the momentum prevails.
Today 66% of all open positions are long (previously 69%), whereas the portion of buy orders increased again, namely from 53 to 62%.