- Barclays (based on Reuters)
The Sterling refuses to edge lower and appears to be headed towards the resistance line above 1.49. However, the Cable is first required to pierce through the supply area at 1.4446, represented by the monthly R1, which limited the pair's volatility on Friday. The 1.44 psychological level is also playing a part in the pair's ability to appreciate, thus, due to no impetus present to push the Pound higher today. As a result, a corrective decline is likely to take place, but the bearish momentum could fail to exceed the 1.4345 mark, as the 55-day SMA and the weekly PP are providing immediate support there.
Although not as strong as on Friday, but market sentiment remains bullish at 55% (previously 58%). Meanwhile, the portion of orders to acquire the British currency decreased from 59 to 51%.