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"The response from local supports remains corrective only and although sterling prices are evidently trading above 1.4000 at present this key/historic level nonetheless looks vulnerable to attack again going forward."
- Associated Foreign Exchange (based on PoundSterlingLive)
Pair's Outlook
On Monday the GBP/USD currency pair reconfirmed the six-week up-trend, but recovering from its intraday low and edging over the 1.43 level. However, the Cable was unable to maintain trade that high, with trade ultimately closing just on top of the monthly PP. Resistance remains strong today, but more USD weakness could push the pair higher and once again over the 1.43 mark. On the other hand, supply just above today's opening price might cause the exchange rate to drop back towards the up-trend, with a chance of the 1.42 psychological level being pierced if fundamentals turn in the Buck's favour.
Traders' Sentiment
Bullish market sentiment grew stronger over the past 24 hours, as 69% of traders' are now long the Pound (previously 65%). The share of purchase orders, however, slid from 55 to 53%.
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