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"In the current environment however, with investors becoming increasingly worried about the impact of the slowdown in China, concerns over the UK economy and the risk of a 'Brexit' look likely to continue to haunt sterling."
- HiFX (based on Business Recorder)
Pair's Outlook
On Friday the Cable suffered a 150-pip loss, breaching the immediate support and closing in on the 2010 low. The Pound is now supported by the Bollinger band, which is the final obstacle, preventing the GBP/USD from falling to the lowest in six years. At the same time, the weekly PP and the monthly S2 now form a resistance cluster circa 1.4380, but a test today is unlikely. Nevertheless, the Sterling is expected to undergo a correction and recover some losses against the Buck, despite technical indicators retaining mixed signals.
Traders' Sentiment
Bullish market sentiment remains unchanged at 63%, whereas the percentage of sell orders grew from 57 to 65%.
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