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"UK data has been unambiguously strong recently, but we remain bearish on the pound. We don't think better growth numbers will translate into tighter monetary policy. We expect incoming Governor Carney will introduce verbal guidance."
- Deutsche Bank AG (based on The Independent Online)
Pair's Outlook
Yesterdays rally gave hopes that pair might advance above the 100-day SMA which eventually failed the pair and sent it 240 below its opening value. At the moment it is hovering above the 3 month low/major level at 1.50. Despite the negativity of the short term technicals, this level should hold for the time being, but downside risk on the pair remains. We might see some rallies (bears capitalizing their gains) which should remain capped by the 1.519.
Traders' Sentiment
Bulls recaptured some of the market. Their numbers in the market increased by 5% since yesterday and at the moment they account for 65% of all market participants. Share of pending orders posted by the bulls, however, decreased by 10% and is at 56% gauge today.
© Dukascopy Bank SA