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"At the moment the market is very much focused on the bullish trend of the dollar, and as long as we stay below $1.6682 the outlook for the pound is still negative."
- FOREX.com (based on Reuters)
Pair's Outlook
Given a downside gap there could emerge a small bullish correction before the sell-off (since the beginning of July) resumes. The immediate resistance is at 1.66, represented by the weekly PP. But the outlook will be viewed as bearish as long as the key level at 1.67 (May low) and the 200-day SMA at 1.6750 are intact. In the meantime, a risk of a reversal, suggested by the monthly studies, will be seen as considerable only at this year's low (1.6250).
Traders' Sentiment
There has been a slight increase in the percentage of bullish traders in the SWFX market—from 63 up to 66%. At the same time there is virtually no difference between the amounts of buy and sell orders placed - 49 and 51% respectively.
© Dukascopy Bank SA