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"We think the uncertainty created [by the elections] will see sterling lose ground and forecast sterling/dollar to drop below $1.50 in coming months."
- SEB (based on Reuters)
Pair's Outlook
On Monday, GBP/USD managed to rebound 90 pips after declining throughout previous week. Pair appreciated more than expected and ended trading day at 1.5127. However, after exiting the wedge, Sterling appears to be attempting to re-enter the downtrend, which it has been following since summer 2014. Weekly technicals suggest the Pound will weaken even more, while daily studies remain mixed. BoE Governor Carney's speech later today is likely to have a high impact, but effect should be limited by tough support at 1.50.
Traders' Sentiment
The position of longs improved compared to Monday (52%), now they constitute 54% of the market. Meanwhile, the percentage of buy orders plunged from 44% to 24%.
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