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"The big thing they'll [the BoE] be looking at is the pass-through of foreign exchange movements on tradeable goods prices after the unusually weak pass-through from the recent strengthening of sterling ."
- Tony Yates, former BoE official (based on Bloomberg)
Pair's Outlook
The Cable gave up on its early gains on Wednesday, as the BoE Governor's speech caused investors to lose confidence in the Sterling. However, losses were limited by the 55-day SMA, which should also cause a rebound today. The GBP/USD is unlikely to break out of its consolidation range (between 55 and 100-day SMAs) today. Nevertheless, risks of piercing the immediate resistance persist, as strong fundamental data could provide a sufficient boost for that. Furthermore, technical studies retain their bullish signs, bolstering the possibility of a positive outcome.
Traders' Sentiment
Bulls keep growing stronger, as 56% of all positions are now long. The portion of buy orders, on the other hand, slid from 36 to 34%.
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