FxWirePro: Brexit vote might provide directional cues as retail sentiment falls to neutral before event

The looming vote at the UK’s House of Commons, on the UK Prime Minister Theresa May’s Brexit agreement with the European Union, could provide directional cues to the pound based pairs, as client data from IG markets, which is UK-based Company, and leader in online broking, providing trading in financial derivatives such as contracts for difference and financial spread betting and, stockbroking to retail traders, strongly suggests no particular bias.

The data suggest that there is one buy position for every sell.

We at FxWirePro, remain bearish on the Pound over the longer horizon. We have recommended selling the pound around 1.41 area, calling for the pound at 1.1 against the USD. However, in the short-term pound might rise further depending on the Brexit vote and the post-voting news, and test the 1.32 area against the USD.