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"Enjoy the sunshine and low inflation this holiday season. But remember that neither are likely to persist. Stay vigilant against sunburn. I and my colleagues on the MPC will also remain vigilant to changes in the economy."
- Kristin Forbes, MPC Member (based on Bloomberg)
Pair's Outlook
Unlike the 55-day SMA, the weekly R1 failed to contain the Cable, which resulted in a surge last Friday. The Sterling added 25 pips against the Greenback and even opened trade higher on Sunday, poised to extend the rally. The nearest resistance is located at 1.5680, namely the upper Bollinger band, while a strong cluster is supporting the GBP/USD from below around 1.5615. Risks of edging lower persist, as the US fundamentals might weigh on the given pair. And the 1.5670 area, which held the Cable for the last five months, is unlikely to give in easily today.
Traders' Sentiment
Bulls and bears have reached a perfect equilibrium, whereas the number of purchase orders increased from 54 to 58%.
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