© Dukascopy Bank SA
"The Help to Buy scheme is actually quite complex. We have one part that's already operating, which is providing mortgages against new homes, nobody has questioned that. The proposal which hasn't yet been implemented, which is providing a guarantee for a limited range of mortgages, could be a problem. It could inflate the market."
- UK's Business Secretary (based on Reuters)
Pair's Outlook
Last week was a rather volatile one for the pair and we could expect similar setting this week as well. As short term RSI and Stochastic suggests pair is facing significant downside risk. Fair share of this risk would disappear if the pair would manage to consolidate above the 200-day SMA. Dips should find support in 1.531/28 area.
Traders' Sentiment
Market remains bearish, but bulls are increasing their pressure. 57% (-3% during the weekend) of market participants are short on the pair and 58% (-7% during the weekend) of pending orders are set to sell the pound against the greenback.
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