- Smart Currency Business (based on PoundSterligLive)
On Monday profit-taking caused the GBP/USD currency pair to recover from its intraday low, but it was still unable to reclaim the 1.43 major level. Moreover, the trend remains bearish and daily technical indicators support that, as their signals are no long mixed, but also pointing south-ish. The Cable is still driven by the upcoming EU referendum concerns, which is the main impetus that is leading the pair to the downside. Fundamentals could still switch into the Sterling's favour, but the recovery is expected to be short-lived. Nevertheless, the base case scenario is a decline towards around the 1.42 mark, with a decent chance of it getting pierced also present.
There are 62% of traders holding long positions today (previously 63%), whereas the share of purchase orders slid from 51 to 46%.