- Bank of Tokyo-Mitsubishi (based on Market Watch)
After having tested the immediate support cluster, the Sterling managed to preserve the momentum yesterday, but failed at reaching the closest resistance. Nevertheless, the GBP/USD has already almost touched the 1.53 major level, ignoring the first stop in face of the 20-day . The current rally is taking place mainly due to a USD sell-off, as a possibility of the Fed delaying the interest rate hike this year remains. The Cable risks retesting the 1.5185 cluster today if the fundamentals trigger a supply and negate current gains; else, we might see the 55-day crossed.
Once again 60% of traders are holding short positions (previously 61%), while the number of sell orders increased from 53 to 58%.