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"I would not put the referendum out there as an issue that's going to break the upward move in the pound. Sterling will get stronger against the euro and yen."
- Steve Barrow, Standard Bank (based on Bloomberg)
Pair's Outlook
GBP/USD carries on consolidating just below the weekly PP at 1.66 before the sell-off is resumed. However, the Sterling may rise up to the May low at 1.67 prior to a decline. Eventually, the rate is likely to descend down to 1.6250 (2014 low), where the bulls will have an opportunity to regain control of the market. But, according to the monthly technical indicators (five out of eight are bullish), the rally should emerge already next month.
Traders' Sentiment
A substantial majority (65%) of the SWFX market keeps believing that the Pound is already below its fair value and the currency should therefore start gaining ground. Concerning the orders, the amounts of buy (52%) and sell (48%) ones are indistinguishable.
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