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"The USD sell-off is broadening, and risks are that it continues to disappoint bulls in the near term. But as we look ahead, we wonder about the sustainability of this trend. So we find ourselves in a position where the stronger USD cycle does not look complete, yet the near-term triggers of a resumption of this cycle are scarce."
- ANZ (based on Reuters)
Pair's Outlook
Upon putting the monthly R1 to the test, the GBP/USD currency pair failed to maintain gains and retreated, closing below the 1.44 level. The Supply, represented by the weekly R1, at 1.4393 proved to be sufficient to keep the Sterling from appreciating against the Buck, thus, another bearish development today is likely. The nearest support is located around 1.4250 in face of the weekly PP, the 20 and the 55-day SMAs. However, there is still a possibility of the Cable rising higher today on positive fundamental data, with the ceiling being the 1.45 psychological level, as it kept the pair at bay for more than a month.
Traders' Sentiment
Market sentiment once again shifted to the bullish side, but remains close to equilibrium, with 53% of all open positions being long. There are now 52% of orders to purchase the British Pound (previously 43%).
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