- Credit Agricole (based on Business Recorder)
Upon reaching the 23-month resistance line on Tuesday, the Cable bounced back, erasing its intraday gains and ending the day with a 28-pip decline. The main resistance area is still represented by the down-trend, but the GBP/USD pair also appears to be struggling to climb over the 200-day SMA. As a result, the upside movement is likely to be capped around 1.4750, while the bearish development could extend towards the cluster circa 1.4515, formed by the monthly PP and the weekly R1. Moreover, technical indicators are in favour of the negative outcome, as they retain bearish signals in the daily timeframe.
SWFX traders' sentiment remains bearish, now at 57% (previously 54%). Meanwhile, more and more pending orders in the 100-pip range are to sell the Pound ahead of the EU referendum, namely 85% today.