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"We have completed the spending round savings early and without all the arguments you normally get. This shows our determination to take the tough decisions needed to deliver our economic plan and to turn Britain around."
- Treasury (based on Reuters)
Pair's Outlook
Pair was depressed under the 55-day SMA for a few days, but got bullish impetus from it and advanced 80 pips. Short term technical indicators suggest that we might see short term rallies till the 1.550, maybe even 1.559. However, in the medium term the pair is likely to return to the defensive as last weeks selloff is likely to resume at some point in the future.
Traders' Sentiment
After a major swing in distribution of open positions after the weekend it seems it has stabilized. Bears continue to control 53% of the market. Distribution of pending orders, on the other hand, started to move in favour for the bulls. They are responsible for 57%, 2% more than yesterday, of posted orders.
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