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"You could argue the majority of the negativity has been priced in. However, if we see more bad news from the unemployment numbers then that could be another catalyst for a weaker sterling."
- Canadian Imperial Bank of Commerce (based on Bloomberg)Pair's Outlook
Yesterday's dip was unable to violate a falling trend-line at 1.5428, as bulls managed to delay formation of a down leg by initiating a shallow rally this morning. However, a reversal is highly unlikely given the current disposition and a move downwards, until 1.5264.30 is reached, seems to be more probable. Afterwards a full-blown recovery is expected.
Traders' Sentiment
Traders' sentiment remains unchanged towards the Cable since the last report, as bulls continue to dominate the SWFX market, taking up 68% of it. The ratio between the buy and sell orders has leveled off and thus does not give a distinct insight into preferences of the market, as their shares are 53% and 47% respectively.
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