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"The dollar continues to move lower as long as we are in an environment where the U.S. central bank is passive in tightening policy."
- BK Asset Management (based on Reuters)
Pair's Outlook
After several unsuccessful attempts GBP/USD has finally managed to close above 1.70, which was considered to be an unlikely event. However, now the currency pair is in a good position to extend the rally further. The initial resistance is the weekly R1 at 1.7083/66, but the price is deemed to be capable of rising up to 1.7320 in the medium term, as it has recently bounced off the lower boundary of the bullish channel.
Traders' Sentiment
The sentiment towards the British Pound is strongly bearish. Right now 74% of the SWFX traders see the currency as overvalued relative to the U.S. Dollar. As for the orders, the percentage of the sell ones surged from 58% to 66%.
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