- Mizuho Securities (based on Reuters)
Yesterday, amid broad USD weakness the Cable soared through the weekly R2 and even managed to test the 1.4681/53 , which consists of the weekly R3 and monthly R1 levels. Since the rally amounted to more than 190 pips, today we may expect a correction to take place. The price will probably stabilise near 1.4533 and then make another attempt to conquer 1.4681/53. Above this resistance GBP/USD should aim for the 55-day at 1.4754.
The number of long positions increased by 12 pp; however, the sentiment is neutral—55% of traders are bulls and 45% are bears. Meanwhile, the share of sell orders went up from 56 to 61%.