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"I wouldn't expect a lot of appreciation in the dollar going forward, because markets have already priced in what is going to happen with relative monetary policy."
- James Bullard, St. Louis Fed President (based on Bloomberg)
Pair's Outlook
After having retested the down-trend, the GBP/USD currency pair bounced back and closed trade with a 22-pip loss on Monday. The bearish trend is expected to prevail and cause the Cable to fall deeper, despite the weekly PP providing immediate support. The decline could last down to the monthly S3 at 1.4053, while technical studies also support the bearish scenario. Nevertheless, a possibility of the down-trend getting breached persists, with the monthly S2 and the weekly R1 around 1.4390 being the next target.
Traders' Sentiment
A solid number of traders remain long the Sterling, namely 65%. Meanwhile, there has been a significant spike in the share of purchase orders; they increased from 40 to 66%.
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