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"The pound has performed well so far this year, supported by evidence of continued strong cyclical momentum in the U.K. economy."
- Bank of Tokyo-Mitsubishi (based on Bloomberg)
Pair's Outlook
GBP/USD rebounded a bit after a sharp fall on Thursday. The Sterling encountered support at 1.5395, which prevented a deeper decline. Nevertheless, the Pound failed to go beyond the monthly R1 level, as it ended the trading day at 1.5431. Technical studies are giving mixed signals, indicating the pair is likely to rise in the shorter time frames; however, the daily time frame is suggesting a bearish outcome through Monday. Meanwhile, nearest resistance for the Sterling is located at a cluster of important levels around 1.5328.
Traders' Sentiment
There are still more bulls than bears among the SWFX traders, namely 55% of them, whereas the number of orders to acquire the Pound remains in a minority at 44%.
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