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"It is too soon to say if more positive views on the general economy mark the start of (a) sustained rise ... indeed the continuing gloom from the high street and the talk of triple-dip recession makes that seem somewhat unlikely - but a rise in two months out of the last three is an encouraging sign."
- GfK NOP (based on Reuters)
Pair's Outlook
Pair has appreciated by more that 150 pips in the last 4 days and at the moment is hovering above weekly pivot (PP). Readings of daily technical indicators suggest that pair has not gain momentum and that pair might be lacking catalyst which would drive it in the longer term. There is a high probability that pair is driven mostly on market sentiment at the moment and 1.5862/78 might kick the pair back down.
Traders' Sentiment
Market participants are easing on their bullish expectations for the cable, but 69% of them (-3% since yesterday) are still long on the pair. It is likely that such ration will hold for some time as bulls hold only marginal majority in distribution of pending orders.