© Dukascopy Bank SA
"Our reforms already address the need for the Civil Service to improve its commercial capability and how it manages contracts. But we must accelerate the pace of change to make more savings for the taxpayer, create better quality, more efficient public services and promote growth."
- Britain's Cabinet Office (based on Reuters)
Pair's Outlook
Pair advanced by almost 200 pips after receiving a bullish impetus from the 20-day SMA. However, as the dynamics of the short term technicals and recent developments show that this has not lifted all the downside pressure from the pair. At the moment it is trading at the Fibo 38.2% (mid-June till start of July sell off). As the downside pressure persists pair is likely to trail lower. This outlook could change if the pair would manage to close above the 1.530 which is likely to cap the short term rallies. Dips should find support with the 1.505/1.500 area.
Traders' Sentiment
Similarly to most of the other major greenback crosses, the distribution of open positions is almost unchanged. 56% of market participants remain long on the pair, but bearish pending orders increased by 3% and is at 60% gauge today.
© Dukascopy Bank SA