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"The MPC will have to do a lot of work, but I guess that's the compact which the two sides implicitly agreed to -- the government gets the deficit down and the bank does what it can to stimulate the recovery."
- Commerzbank (based on Bloomberg)
Pair's Outlook
The GBP/USD cross did not change dramatically in value yesterday; however, it has slipped below the weekly PP at 1.5697. That might be a signal that the pair is not ready to breach the 1.57 level and that it is poised for a further decline. Moreover, there is no substantial support levels on what the pair could rely on, thus the downside risks are increasing.
Traders' Sentiment
The sentiment towards the Pound returned from moderately bullish to strongly bullish, being that the percentage of long positions open on GBP/USD has surged from 57% up to 64% since the previous report. In the meantime, the share of sell orders remained at 68%.
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