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"Some of the market reaction to our guidance perhaps attached less weight to that link between growth and labour productivity than I think it might have."
- BOE policymaker (based on Reuters)
Pair's Outlook
Pair did not manage to advance further as bearishness, which could be felt few days before the recent jump, seems to have caught up. Weekly R2/2013 (January) high pushed the pair below the monthly R2 which is keeping it at check at the moment. Failure here could send the pair to the prior to the jump level, but it should find support around 1.580 in that case. A solid close above the 1.616/18 would uplift most of the downside risk.
Traders' Sentiment
Bears took a major downfall yesterday. At the moment they account for 68% of market participants which is 6% les than yesterday. Pending orders are almost evenly distributed between the long and short traders. That account for approximately 7% decrease in pending bearish orders.
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