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"The Chancellor (Osborne) spoke for over 50 minutes today, but not once did he mention the real reason for this spending review - his comprehensive failure on living standards, growth and on the deficit. Surely the Chancellor should be taking bold action now to boost growth this year and next."
- Labour's finance spokesman (based on Reuters)
Pair's Outlook
Pair dipped till 1.53 where it found initial support with the 100-day SMA. Pair might remain in somewhat tight range, as suggested by the short term technical, since below the current level we can find a wide range of strong technical levels. However, overall bias remains bearish and pair is likely to fall to 1.52 soon. Short term rallies should remain capped below the 1.54.
Traders' Sentiment
Bulls took a significant chunk of the market from the bears. Their holdings increased by 7% since yesterday and at the moment they account for 55% of market participants. In addition to this, 56% of all pending orders are set to go long on the pair as well.
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