© Dukascopy Bank SA
"July's survey highlights a new wave of optimism across the UK construction sector, with companies reporting a pace of expansion in excess of anything seen over the past three years."
- Markit (based on Reuters)
Pair's Outlook
Pair gained approximately 200 pips in the end of the last week when it bounced from 1.51. At the moment it is demonstrating similar momentum and is testing 100-day SMA. Consolidation above it would allow the pair to inch higher and test 200-day SMA in the near future. Failure at this point is likely to send the pair trailing downwards again with high chance of finding support only at 1.50.
Traders' Sentiment
Pair continues to change hands rapidly and at the moment bears and bulls hold almost equal shares of all open positions in the market. However, majority (63%) of pending orders are set by the bears suggesting they are preparing for a charge.
© Dukascopy Bank SA