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"The USD can make new cyclical highs in the near term as US interest rate expectations adjust higher."
- Commonwealth Bank (based on Business Recorder)
Pair's Outlook
Despite upbeat UK Retail Sales data yesterday, the GBP/USD currency pair extended its post-Fed slump. Trade closed near the 1.49 major level and, thus, just in front of the falling wedge's support. This trend-line, also bolstered by the monthly S1 and weekly S2, should contribute to the Cable's rebound. The immediate resistance in face of the Bollinger band is likely to be ignored, with gains capped around 1.50. A fall towards the support cluster's lowest level, namely the weekly S2, is not out of the question.
Traders' Sentiment
SWFX traders' sentiment keeps improving, as 65% of all positions are long (up from 63%). The portion of sell orders, however, remains unchanged and in the majority, taking up 68% of the market.
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