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- BN Amro (based on Business Recorder)
Pair's Outlook
Despite strong UK inflation figures, the Sterling was unable to outperform the US Dollar, having returned to the 1.31 psychological level yesterday. Today's fundamentals are expected to have a higher impact on the British Pound, but the Cable is now located under a relatively strong resistance area, represented by the weekly PP and the 20-day SMA; therefore, it is uncertain whether positive figures will be sufficient to erase yesterday's losses completely. Moreover, technical indicators suggest the pair is to weaken further, with the nearest support being the weekly S1 at 1.2868, also reinforced by the one-year trend-line.
Traders' Sentiment
Today 56% of traders are long the Pound (previously 57%), whereas the portion of sell orders barely changed, having fallen from 62 to 61%.
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