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UK "construction and industrial data are a further indication that domestic momentum is slowing. This follows services, manufacturing and construction PMIs showing a slowdown in activity. That will further push back any pressure on the BoE to raise interest rates."
- FXTM (based on Reuters)
Pair's Outlook
Although GBP/USD seems to have found support ahead of 1.50, the risks are still considered to be skewed to the downside. For lack of the strong support nearby, the Cable is likely to keep moving south until it hits the 2013 low. However, should the bearish pressure persist and 1.48 give in, the Sterling will then have a good opportunity to visit the 2010 low near 1.42. Meanwhile, the technical indicators are mixed.
Traders' Sentiment
The SWFX market traders are unwilling to either increase or decrease their exposure towards the Pound. Like last week, 59% of positions are long and 41% are short. As for the orders, the sell ones are once again in a majority with 64%.
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