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"Unless we get a continuation of the comments from the end of last week, euro/dollar will probably dip lower and cable will probably follow"
- Lloyds TSB (based on Reuters)
Pair's Outlook
GBP/USD stays bound by an uptrend channel and has just recently tested an upward sloping resistance line at 1.5729/90. This implies increased possibility of bearish activity by the currency pair in the short to medium-term. The initial support lies at 1.5650, but is viewed as unable to halt the cable en route to 1.5603/1.5574, while an uptrend support at 1.5480 might prove to be too tough to breach.
Traders' Sentiment
The share of long positions on GBP/USD has fallen down to 38%, meaning that sentiment of traders has turned bearish towards the cable and the pair is becoming oversold. As for the orders, 49% of them are to acquire the Sterling and 51% are to sell it against the greenback.
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