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"They agreed that a Commission fact-finding mission should as soon as possible examine in loco the border control, movement of people and goods questions. President Barroso expressed his hope that Spain and the UK will address these matters in a way that is in line with their common membership in the EU."
- EU Commission (based on Reuters)
Pair's Outlook
It seems that bulls are recharging after a 200 pip rally in the end of the last week and 6 month high at 1.575 should be tested any time soon. However, there still remains significant downside risk indicated by the short term Stochastic indicator (predicts major turning points) and medium and long term technicals on aggregate. All in all, it seems that short term rallies should be capped by the 1.75 and dips/sell offs should find support with the 1.548/5 area.
Traders' Sentiment
With the help of majority of pending orders (63%) being set to go short on the pair, market sentiment remains strongly bearish. At the moment bears account for 72% of market participants, that is 2% more than yesterday.
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