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"Fearing a more dovish ECB message, we still like to be long pound-dollar and short euro-pound."
- Citi (based on Bloomberg)
Pair's Outlook
Yet again the Cable's volatility to the upside was limited by the 1.55 major level. Moreover, the pair was pushed slightly back, suffering a 21-pip loss, amid mixed US fundamental data results. Nevertheless, the GBP/USD keeps closing trade higher each day, with another rebound expected today, whereas technical indicators are bolstering this possibility with their bullish signs. The cluster around the 1.55 psychological level keeps providing resistance; a breakout today is unlikely to occur.
Traders' Sentiment
More traders now have a positive outlook towards the Sterling, as 55% of all positions are long (previously 53%). Meanwhile, the number of buy orders returned to its Monday's level of 36%.
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