- S&P (based on Reuters)
The British Pound experienced another sell-off yesterday, exceeding Monday's loss by ten pips. Even though technical studies retain mixed signals in the daily timeframe, the Cable is expected to suffer another decline today, falling under the 1.40 mark. The closest area to limit the dips is represented by the weekly S3 and the monthly S1 at 1.3945. However, this threshold might well fail to keep the GBP/USD currency pair afloat, leaving the door open to a decline towards the 1.39 major level. Meanwhile, the Bollinger band and the weekly S1 form a resistance area around 1.4065.
Although not as strong as yesterday, but market sentiment remains bullish at 67%. The share of purchase orders slid from 70 to 54%.