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"If this is a recession, then not only is London doing rather well but imagine the impact of any economic and financial recovery."
- Investec (based on Reuters)
Pair's Outlook
After a major comeback from monthly S1 at 1.557 pair dipped once again, this time from weekly S1 at 1.567 and at the moment is trading outside the Bollinger band which is the first resistance level at 1.554. It is very unlikely pair might start a major comeback anytime soon, but such volatile depreciation is somewhat unexpected as well making it likely we should see some sort of stabilization or consolidation in 1.54/55 area.
Traders' Sentiment
The bullish traders' sentiment towards the Cable is strengthening, since the market participants holding long positions currently constitute 65% of the total number, whereas bears are in a distinct minority, taking up 35% of the market. At the same time there is no difference between the amounts of buy and sell orders.
© Dukascopy Bank SA