Live Updates > Live Update Details
2025-10-31 21:25:27
[Pound Sterling Shows Oversold Technical Signals, Risk-Reward Ratio for Shorting Worsens] ⑴ The pound has retested the 1.3100 level against the dollar, with a 2.5% drop so far this month, showing significant weakness. ⑵ The market has fully priced in the negative factors for the pound, including concerns about the UK budget and expectations of an unexpected interest rate cut by the central bank. ⑶ Current selling pressure may be driven more by month-end fund flows than by deteriorating fundamental factors. ⑷ The risk-reward ratio for continuing to short at current levels is no longer attractive, and a more cautious strategy is needed. ⑸ The 14-day Relative Strength Index (RSI) has fallen to 26, the lowest level since October 2023, indicating severe oversold conditions. ⑹ Historical data shows that when the RSI falls below 25, the pound often experiences a technical rebound in the short term. ⑺ Near-term resistance levels to watch are 1.3140 and the 200-day moving average at 1.3248, with key support at the psychological level of 1.3000. ⑻ Technical indicators suggest limited downside potential, but short sellers should be wary of the risk of a rebound triggered by position adjustments.
