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"(GBP/USD) remains under pressure and vulnerable to further declines, especially with the U.S. employment report ... providing the markets with optimism that we can expect a U.S. interest rate rise from the Federal Reserve this September."
- FXTM (based on Reuters)
Pair's Outlook
Despite a large number of resistances the Cable preserved its bullish momentum and closed above the monthly pivot point. The potential upper limit is now 1.5565, where the 38.2% Fibo of the Jul 2014—Apr 2015 sell-off merges with the weekly R2 level. However, there is now an increased chance of a rally beyond the monthly R1 towards the May highs near 1.58. Another important level is 1.5878, represented by the 50% retracement.
Traders' Sentiment
There are still more bulls (59%) in the market than there are bears (41%), as the former do not seem to be willing to take profits after the latest rally just yet. As for the orders, there is no significant difference between the buy (53%) and sell (47%) ones right now.
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