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GBP/USD to retake 1.54

© Dukascopy Bank SA
"Markets will already have much to chew through by the time the press conference begins. Any concerns over GBP strength will resonate, but we remain committed sterling bulls from a strategic perspective."
- TD Securities (based on FXStreet)

Pair's Outlook
Strong US fundamentals pushed the Cable back under the 1.54 level, but the powerful cluster around 1.5360 limited the losses. Although the same group of supports is still preventing the GBP/USD from edging lower today, another portion of US fundamental might push the pair into the middle of the cluster to 1.5360. From a technical point of view, the Sterling should rebound, with the exchange rate returning to the 1.54-1.55 trading range. The 100-day SMA is the immediate resistance and should limit upside volatility.

Traders' Sentiment
Bulls and bears broke out of equilibrium, with long positions taking up 51% of the market today. Meanwhile, the number of orders to purchase the British Pound declined from 65 to 63%.

© Dukascopy Bank SA


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