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"The pound is regarded by continental investors as a relative safe haven amid Europe's turmoil. The numbers coming out of the U.K. have been a bit discouraging but that's not limiting the currency at the moment"
- FXPro Financial Services Ltd. (based on Bloomberg)
Pair's Outlook
The Cable is continuously being sold off, maintaining its southwards direction. At the moment the pair is testing 1.5616/1.5589, which is unlikely to provide sufficient support and commence recovery of the price. Nonetheless, a downtrend support line located at 1.5545 may halt bearish advancement of GBP/USD, before it resumes moving towards its long-term goal at 1.5258.
Traders' Sentiment
Even though the portion of bulls on GBP/USD has increased up to 55% and the portion of bears has fallen down to 45%, the overall sentiment of traders remains mixed, as the advantage in numbers is not yet distinct to claim the currency pair is overbought. As for the orders placed, the situation is reversed, since 46% of them are to buy the Sterling and 54% to sell it against the U.S. Dollar.
© Dukascopy Bank SA