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"While ordinary families on low and middle incomes are seeing their living standards fall, those at the top are reaping the benefits of David Cameron's tax cut for millionaires."
- Labour party member (based on Reuters)
Pair's Outlook
The pair lost some pace after a major rally last week, but maintains mildly bullish stance. It suggests that the pair's bulls still intend to test 6 month high at 1.575. Medium and long term technicals, however, highlight the existence of significant downside risk and only a close above the mentioned 6 month high could neutralise most of it. Dips and sell offs should find support with 1.556 or 1.550. Close below these levels would put 200-day SMA at 1.540 on the map.
Traders' Sentiment
Despite the recent rally bears are maintaining strong grasp on the market. At the moment they account for 74% (+2% since yesterday) of market participants. In addition to this, 62% of pending orders are in their favour as well.
© Dukascopy Bank SA