© Dukascopy Bank SA
"The upward move in market expectations of where Bank Rate will head in future could, at the margin, feed into the effective financial conditions facing the real economy."
- BOE governor (based on Reuters)
Pair's Outlook
Pair found so needed support with the weekly S2 after double dipping below the 1.55. However, to be on the fair side we, have to agree that pair did similar moves in the last few days leaving another dip below the 1.55 on the map. At the moment pair is trading on the 20-day SMA which could easily provide both, bearish and bullish impetus, but overall trend in the medium to long term should remain bearish.
Traders' Sentiment
It seems that bears di not have the best day yesterday. They still might hold overwhelming majority (66%) of all open positions, but this number was 5 percentage points larger yesterday. In addition, only 53%, in comparison to 58% yesterday, of pending orders remain in favour of the bears.
© Dukascopy Bank SA