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– Rabobank (based on Business Recorder)
Pair's Outlook
A rather unexpected turn of events, namely the tone of the US President-Elect's press conference, caused the Cable to recover from its intraday low yesterday and even close trade above the 1.22 mark. The GBP/USD pair is now expected to retain yesterday's strength and post more gains today, but with the exchange rate doubtfully climbing over the 1.23 mark, as the 20-day SMA and the weekly PP form a relatively strong resistance there. Furthermore, technical studies are no longer showing bearish signals, creating a possibility for the positive scenario to prevail. Given that no further political event influences the Pound today, another close in the green zone is more than likely.
Traders' Sentiment
Nearly three quarters (73%) of all open positions are now long (previously 72%). The share of buy orders inched up from 47 to 51%.
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