- Currencies Direct (based on Business Recorder)
On Wednesday the Cable suffered a rather serious decline for the third consecutive day this week, also crossing a strong support in face of the weekly S3 and the monthly S1. This cluster is now providing immediate resistance, with the Bollinger band now bolstering it. Although the prospects are bearish towards the GBP/USD, a possibility of the pair undergoing a corrective rally exists. If the Sterling manages to rise above 1.3950 dollars, we are likely to see the 1.40 level retaken. Contrariwise, with more bearish momentum the slump could extend even beyond 1.38.
Bulls keep retreating, as 65% of all open positions are now long (previously 67%). The number of buy orders surged from 54 to 57%.