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"The UK economy is in its third quarter of recession, although recent data has suggested the economy may be rebounding"
- Reuters
Pair's Outlook
According to a D1 graph, seems that the cable has finally escaped from the channel and currently is checking the first support level at 1.6177/58, where the monthly R2 and weekly S1 intersect. If the price settles below this level, it is very likely that correction will gain more bearish impetus and extend the impulse even lower. Further support levels may be at 1.6090 and around 1.6015 area.
Traders' Sentiment
SWFX market participants have very negative outlook on the GBP/USD exchange rate, since only 25.3% have long positions and 74.7% have short positions. Therefore, the market has huge expectations for the cable to undergo a correction. Situation with orders is different, as more traders are willing to buy the sterling: 61.1% have placed orders for a long position and 38.9% for a short.
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