- Capital Economics (based on PoundSterlingLive)
The Pound remained under pressure on Wednesday, having edged lower, with volatility stretching out to the 1.28 mark. Nevertheless, the immediate support level, namely the weekly S2 at 1.2899, was preserved, suggesting that the Sterling could undergo a small correction today. In case bulls take over the market, gains are expected to be limited by the 1.31 major level, also reinforced by the weekly S1. At the same time, a breach of the immediate support is likely to open the door for sharper losses, with the second support area located only around 1.2630, represented by the weekly S3, the monthly S1 and the Bollinger band.
Today 65% of traders hold long positions (previously 66%), while the portion of sell orders inched down from 71 to 65%.