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- Canadian Imperial Bank of Commerce (based on Bloomberg)
Pair's Outlook
Considering that GBP/USD has just overcome a series of important resistances, further appreciation of the Sterling is expected. Once the monthly R1 at 1.6554 is also breached, the currency pair will open up a path towards the 2011 high at 1.6745, but we should be wary of a possibility of a pullback down to the merger of the falling support line and the monthly pivot point at 1.6206/04.
Traders' Sentiment
Along with the Swiss Franc the Pound is one of the most infrequently purchased currencies—only in 26% of trades. Accordingly, the number of long positions in GBP/USD is notably smaller than the amount of bears, who currently take up as much as 71% of the market.
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