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- HSBC (based on Business Recorder)
Pair's Outlook
On Tuesday the GBP/USD currency pair weakened once again, but this time with the support cluster around 1.24 limiting the losses. The Cable appears to have established a broadening rising wedge pattern, currently putting the lower trend-line to the test. Fortunately, the given trend-line is reinforced by the 20-day SMA, the weekly and the monthly PPs, which altogether are likely to prevent the Sterling from sustaining sharp losses. However, a lot depends on today's US fundamentals: should they turn in favour of the US Dollar, the Pound could be seen reaching the 1.23 mark, causing the wedge to lose its credibility.
Traders' Sentiment
SWFX market sentiment improved once again, as 73% of traders now have a positive outlook towards the Pound (previously 71%). As for the pending orders, 59% of them are still to sell the British currency.
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