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"In addition to providing credit, (the financial services industry) creates demand in other sectors and helps improve the flow (of) capital around the economy. A well-functioning financial services sector improves both capital efficiency and overall UK productivity."
- PwC (based on Reuters)
Pair's Outlook
Pair appreciated whole last week after receiving a bullish impetus from the Fibo 23.6% (mid-June start of July move). Start of this week indicated further strength of the pair, however, 100-day SMA seems to be the level which could cause major failure of the pair or a short term sell off (signal from the Stochastic indicator in the short term).
Traders' Sentiment
Bulls seem to have succumbed to the pressure coming from the bears. Share of long positions decreased by 6% and at the moment 53% of traders are short on the pair. In addition, 55% of pending orders are set to sell the cable against the greenback as well.
© Dukascopy Bank SA