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"The forward guidance contained in the inflation report was broadly expected but what was unexpected were the get-out clauses. The BoE's pre-commitment to keeping rates at a record low is not as conclusive as it first appeared."
- G+ Economics (based on Reuters)
Pair's Outlook
Pair started falling towards the Fibo 38.2% (mid of June till beginning of July move)/monthly PP/weekly S1 yesterday, but received a strong bullish from it which sent the pair more than 300 pips higher. On the way it breach 2 strong resistance areas and at the moment is trading above the 200-day SMA. Due to this unexpected explosion we have a number of conflicting readings from technical indicators which overall give neutral outlook.
Traders' Sentiment
It becomes rather evident that bulls have lost the fight against the bears. Short traders at the moment hold 65% (+8% since yesterday) of all open positions in the market. Most of this change seems to be coming from triggering of pending orders as share of pending short orders has decreased by 13% since yesterday and is at 53% gauge at the moment.
© Dukascopy Bank SA