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"We are seeing encouraging signs with respect of pay... we expect this pick-up to accelerate."
- Mark Carney, BoE Governor (based on BBC)
Pair's Outlook
GBP/USD declined significantly on Wednesday due to inflation report from the Bank of England. The pair breached a number of strong support lines, including monthly and weekly S1. The current trading level is located below the weekly S1 at 1.5773. However, technical studies became neutral on a daily chart, meaning that we can expect a stabilization of the pair, at least in the short-term. In the medium-term, however, the Pound may plunge down to monthly at 1.5662, as predicted by weekly technicals.
Traders' Sentiment
It seems that some traders took profit from yesterday's decline. Right now 60% of all positions are long (58% yesterday), while pending orders in 100-pip range improved during last 24 hours.
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