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– Natixis (based on PoundSterlingLive)
Pair's Outlook
The Pound managed to end trade in the green zone on Friday, with the upper trend-line of the seven-month descending channel pattern limiting the gains. Today the British currency appears to have retained its post-inauguration strength, attempting to post more gains against the US Dollar. Another rally would imply a breach of the channel's upper border, suggesting that more GBP/USD strength is to follow. The immediate resistance area around 1.2440 is unlikely to hold the Cable from climbing higher, but the second cluster, formed by the 100-day SMA and the weekly R1, has a better chance of succeeding. The base case scenario, however, is a surge not further than 1.25.
Traders' Sentiment
Bulls keep losing numbers, are 68% of all open positions are now long (previously 69%). The share of sell orders remains unchanged at 52%.
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