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- Kathleen Brooks, City Index (based on PoundSterlingLive)
Pair's Outlook
On Monday the British currency weakened against the US Dollar, finding support at the 1.24 major level. Consequently, the Cable is now expected to rebound and make its way towards the 1.25 psychological level, ignoring the immediate supply area. However, uncertainty remains, as technical indicators retain mixed signals in the daily timeframe, whereas US election results could have an unpredictable impact on the pair. Furthermore, last week's breach of the post-Brexit down-trend also suggests that the Sterling is to keep edging higher. The worst case scenario, however, is a slump towards 1.2150 if the Greenback receives a substantial boost from the election results.
Traders' Sentiment
Market sentiment remains bullish at 62% (previously 63%), while the portion of orders to sell the Pound inched down from 60 to 59%.
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