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"Directly below lies the 1.5332 July low. A close below here is looking increasingly likely and will trigger losses to the 1.5172 June low and 1.5088 the 61.8% retracement."
- Commerzbank (based on FXStreet)
Pair's Outlook
The Cable dropped to the lowest in the last six weeks yesterday, with the immediate support cluster barely holding the losses. The Greenback weighed on the Sterling, amid much better-than-expected GDP data, with a similar situation due today. Strong UK GDP data is likely to boost the Pound and help it rebound, regaining some of the lost value over the past few days, with the weekly S2 limiting the gains. However, a poor reading can throw the GBP/USD deeper down towards the 200-day SMA around 1.5321.
Traders' Sentiment
Bullish traders' sentiment remains unchanged at 51%, whereas the number of purchase orders lost 12 percentage points. The commands now account for only 52% of the market.
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