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"Sterling is likely to be most vulnerable on concerns of capital flight risk needed to fund the deficit, although its recent weakness has gone some way to reflect these risks."
- Heartwood Investment Management (based on PoundSterlingLive)
Pair's Outlook
The British currency remained almost completely unchanged against the US Dollar on Wednesday in the wake of mixed fundamental data results. Although the Cable managed to stay above the 1.42 major level, technical studies suggest the pair could edge lower again today. The immediate support is represented by the 20-day SMA, the weekly and the monthly PPs, but the Sterling could still put the middle level of the cluster, namely the monthly PP at 1.4141, to the test. On the other hand, the psychological 1.42 mark might cause a rebound, as the GBP/USD was unable to close below that area since Monday.
Traders' Sentiment
Today 60% of traders have a positive outlook towards the British Pound, compared to 56% on Wednesday. At the same time, the share of sell orders barely changed, as it declined from 61 to 59%.
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