- Commonwealth Bank (based on Reuters)
A lot better-than-anticipated UK Retail Sales figures on Friday helped the Cable to overcome the 1.44 mark. However, today the GBP/USD opened with a rather significant bearish gap, amid London's mayor stating he would support the Brexit. Meanwhile, technical indicator signals shifted from bullish to mixed, implying that a negative outcome is more probable by day's end. The weekly S1 at 1.4247 is providing immediate support, but is unlikely to hold the losses. As a result, we might see a large drop below the 1.42 major level if demand at the second target, namely the Bollinger band, is weak.
Today 64% of traders are long the Pound, compared to 61% on Friday. The share of purchase orders, however, slid from 63 to 59%.