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"The flow is shifting back in favour of the dollar, hurt recently by spotty economic data and receding likelihood of an early rate hike. Comments by policymakers has also helped."
- FPG Securities (based on Reuters)
Pair's Outlook
The Cable suffered heavy losses on Friday, amid better-than-expected US fundamentals. As a result, the Sterling breached the channel lower trend-line, breaking out of the pattern, and found support at 1.5475, namely the 20-day SMA. The GBP/USD opened trade under the mentioned SMA, therefore, more downside volatility is anticipated today, with immediate support located at 1.5408, represented by the 200-day SMA. Technical indicators are now giving mixed signals, unable to confirm the scenario.
Traders' Sentiment
SWFX traders' sentiment slightly improved, as 46% of all positions are now long (previously 45%). The portion of buy orders dropped by 20 percentage points, as they now take up 49% of the market.
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