- ING (based on Reuters)
The British currency overperformed on Monday, having edged more than 200 pips higher against the US Dollar. Moreover, the Cable reconquered the 1.47 major level yesterday, but still remains in an overall bearish trend until the resistance line is overcome. Technically, the Pound should undergo a correction today, with investors taking advantage of the previous sharp rally. Aggregate technical indicators are bolstering this possibility, but ahead of the EU referendum the Sterling's behaviour became more and more unpredictable, thus, the down-trend at 1.4760 could be put to the test today.
Traders turned bearish on the Pound, being that 54% of all open positions are short (previously 45%). At the same time, the portion of sell orders increased from 56 to 62%.