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"Stronger data is also at the margin helping the [dollar], as the data acts as a rebut to recent dovish speeches by Ben Bernanke and Janet Yellen."
- Deutsche Bank (based on MarketWatch)
Pair's Outlook
GBP/USD pair eased its pace of depreciation and the variability decreased as well. The Cable demonstrates stability around a 1.5 level, together with all technical measures indicating flat direction. However, the pair still remains in the lower part of the Bollinger band and does not demonstrate any attempts to breach the overhead resistance levels above, thus the bearish trend might be continued with the closest supports at 1.4939, the weekly S1, and 1.4862, where the Bollinger band merges with monthly S1.
Traders' Sentiment
Recent consolidation in the pair has sharply changed traders' sentiments, as the buy side increased to 74% and the sell side contracted to 26%. Waiting orders' market supports further depreciation, as 39% set for a long and 61% for a short position.
© Dukascopy Bank SA