- Western Union Business Solutions (based on Reuters)
Due to BoE governor's statement on Tuesday the Sterling weakened substantially, breaching the 1.3230 support level and slumping down to the 1.30 major level. Even though technical indicators are giving mixed signals today, the Cable remains subject to more weakness. The weekly S2 at 1.2899 is the closest support today, but a much stronger cluster is located around 1.2660, represented by the weekly S3, the monthly S1 and the Bollinger band. However, we should not rule out the possibility of the Pound regaining the bullish momentum, amid a dovish Fed statement, which is scheduled for today.
There are 66% of all open positions being long today (previously 68%), while the number of orders to sell the Pound edged higher from 45 to 71%.