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"A vote to leave the EU might result in an extended period of uncertainty about the economic outlook, including about the prospects for export growth. This uncertainty would be likely to push down on demand in the short run."
- Mark Carney, Governor of Bank of England (based on WBP Online)
Pair's Outlook
The Us currency weakened on Tuesday, allowing the British Pound to take the upper hand once more and reach the 1.44 mark over the day. A break out of the falling wedge pattern implied that more bullish momentum was likely to follow, with the Cable aiming towards the resistance line at 1.45. Today only one resistance cluster separates the GBP/USD currency pair from reaching that goal, formed by the Bollinger band, the 100-day SMA and the weekly R2. However, we should not rule out the possibility of the exchange rate returning below 1.4350, with the nearest support represented by the weekly R1.
Traders' Sentiment
Market sentiment remains bullish, but taking up 56% of the market, compared to 57% yesterday. At the same time, the portion of orders to acquire the Sterling increased from 36 to 59%.
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