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Chart Created Using FXCM Marketscope 2.0
Technical Outlook: Sterling broke above the upper median-line parallel extending off the May 30th high last night with the rally testing confluence resistance at the 61.8% retracement of the decline and the 50-line of the proposed median-line formation off the lows, at 1.4285. Heading into tomorrow’s inflation print, the near-term focus remains weighted to the topside while above 1.4175/77 where the lower median-line parallel converges on a Fibonacci confluence and we will retain this level as our near-term bullish invalidation.
A topside breach targets subsequent resistance objectives at the 1.4350, the upper median-line parallel of the ascending structure off the lows and the 88.6% retracement at 1.4406. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!
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- The DailyFX Speculative Sentiment Index (SSI) has remained net-long the pound since late November with the ratio standing at +1.45 (57% of traders are long- 12.4% lower than the previous day)
- Short positions are 20.3% higher than yesterday and 13.6% above levels seen last week.
- Open interest is 1.0% lower than yesterday and 1.9% above its monthly average
- The decline in long positioning suggests that the retail long-bias may be waning (bullish near-term)
Relevant Data Releases This Week
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