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"We cannot go on forever in a low pay and low productivity world in which all we can say to workers is, 'You have got to take a wage cut to keep your job. For a very long time, five or six years, wages have been suppressed in low wage sectors. I am sending a signal that we are entering a very different environment."
- British Business Secretary (based on Reuters)
Pair's Outlook
June high seemed to be causing trouble in the end of the last week, but as we can see pair started the week by forming new high. It might provide additional incentive for bulls to push further, however, possibility of bulls capitalizing on their gains and thus causing a minor sell of, shouldn't be neglected completely. 1.605 is a good interim target for the long traders, if the pair closes above it we could start thinking about 2013 high at 1.64. Failure at 1.605 could send the pair to the last week closing levels around 1.59.
Traders' Sentiment
Bulls continue to control approximately 70% of the market, the same as in the last week. Noticeable change can be seen in the distribution of the pending orders—64% of them are set in the favour of the bears as well, that is a 6% increase during the weekend.
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