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"What we have now is a very strange situation where the U.S. economy continues to grow but there's elevated risk of a financial selloff, and it's actually the most positive environment for the dollar."
- SLJ Macro Partners LLP (based on Bloomberg)
Pair's Outlook
On Wednesday, the Cable turned around in front of 1.54 and even pierced the immediate support in face of the weekly R1. The Sterling is trading flat between the 200-day SMA and weekly R1, awaiting the BoE's rate decision today. The British Pound risks edging lower today, even though the MPC votes might still be somewhat bullish to the currency. Technical indicators shifted to distinctly bearish in the daily timeframe; however, they might not be as reliable today, due to different expectations of the MPC members. Nevertheless, we remain bullish the Sterling and expect it to climb over 1.54.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 53%, whereas the portion of buy orders dropped down from 56 to 47%.
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