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- Morgan Stanley (based on Business Recorder)
Pair's Outlook
The GBP/USD currency pair declined on Thursday, amid stronger-than-expected US fundamentals boosting the American Dollar that day. As a result, the pair slid back under 1.32, but technical indicators retain mixed signals, creating a possibility for another rally. Another bullish outcome would mean a breach of the immediate resistance, namely the weekly R1, opening the door for a surge towards the 1.33 major level and perhaps even towards the second resistance area around 1.3350. However, we should not rule out the Cable experiencing another leg down, leading to a break through the monthly PP at 1.3170.
Traders' Sentiment
Traders' sentiment remains bearish, now at 58%, compared to 56% on Thursday. At the same time, the portion of orders to acquire the British Pound increased from 44 to 58%.
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