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"Now even as growth finally returns, with prices still rising faster than wages, with business investment still weak, with unemployment still rising in half the country, with bank lending to business still falling, we can't be satisfied."
- Labour party member (base on Reuters)
Pair's Outlook
Pair finished the week with a mild sell off to dip 1.60 which seems to be still weighing on the pair. At the moment it is trading almost exactly at the weekly PP and just slightly below the monthly R2. As suggested by the short term technicals, pair has the propensity to inch up higher, but seems to be loosing it in the longer term. 1.616 seems to work as a strong resistance in the medium to long term, a solid close above it would put 1.63 on the map.
Traders' Sentiment
It seems that strong sell of in the end of the last week helped bears to gain some confidence. At the moment they account for 74% of the market participants, that is 6% than on Friday. On the other hands, majority of pending orders are set by the bulls. Overall gauge it at 59%, 8% more than on Friday and 15% more since Thursday.
© Dukascopy Bank SA