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"At this stage, it is difficult to know whether some of the recent more positive signs will persist. Should those signs fade, the MPC does stand ready to inject more money into the economy"
- Bank of England Governor (based on Bloomberg)Pair's OutlookYesterday GBP/USD pair broke through 1.5995 support level and slipped to a 1.5932 zone, where the weekly S2 goes. As the currency pair shows sighs of depreciation, it is very likely that currency pair will reach at least 1.5880/1.5860 zone, where the historical support levels and the monthly S1 and weekly S2 lie. On the other hand, since the peak on 21st of September, the price has depreciated a lot and H4 RSI value is already around 30 and in D1 time frame RSI value is 38.
Traders' SentimentAs GBP/USD price falls, more people open long positions, willing to catch a bottom. Current figures of SWFX market are: 40% have a long position and 60% have a short. Pending orders are distributed almost equally, as 48% for a buy and 52% for a sell.
© Dukascopy