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"The British Pound may stage a larger relief rally over the days ahead should the key developments coming out of the UK raise the outlook for inflation and dampen market expectations for another round of monetary support."
- Daily FX
Pair's Outlook
GBP/USD entered Monday's trading session red, testing the weekly Pivot Point right under a daily cloud resistance. The pair appears to have entered a rising wedge, suggesting that 1.2495 will be critical to gain insights on the next movement. While a close below would put 1.2416, the weekly S1 into perspective, a bounce from the area would still preserve bearish potential for a downside breakout over the next few days. We see the rate maintaining the northward motion during the day with various time-frame SMAs weighing on the currency pair from above.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 61% (previously 62%). At the same time, the share of sell orders gained four percentage points, having fallen to a total of 59%.
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