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- Mizuho Bank Ltd (based on The Business Times)
Pair's Outlook
Friday ended with the Cable remaining relatively unchanged, as the post-Brexit down-trend limited the gains. Nevertheless, the GBP/USD pair opened with a bearish trend today, but the five-week support line keeps preventing the given pair from edging lower. Furthermore, the support line is also reinforced by the weekly S1, thus, a downside development would be difficult to realise, despite technical indicators retaining bearish signals. However, in case the immediate support area fails to hold, the 1.2882 level should be seen as a potential psychological support level, which kept the Sterling elevated since July.
Traders' Sentiment
SWFX traders' sentiment remains bullish, with 61% of all open positions being long (previously 57%). The share of purchase orders also improved, having risen from 44 to 52%.
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