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- Charles Plosser, Federal Reserve Bank of Philadelphia (based on Bloomberg)
Pair's Outlook
The Cable took a major hit yesterday, plummeting all the way from the weekly PP down to the monthly pivot. Here the demand is likely to exceed the supply, considering a large number of various studies stuffed between 1.66 and 1.65. Still, we should be wary that GBP/USD is approaching the apex of the rising wedge pattern, meaning that it is expected to eventually break our of this formation to the downside.
Traders' Sentiment
As a result of a significant drop in the Pound's value, many of the traders decided to square off their positions, thereby bringing the overall sentiment back to neutrality (46% long and 54% short), as seen five days ago.
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