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GBP/USD on the edge of dropping to a fresh 7-month low

© Dukascopy Bank SA
© Dukascopy Bank SA
"We have been cautious about extending USD long positions ahead of the Fed, wary that the USD could give back ground if the Fed stresses caution and FX headwinds in their press conference."
- BNP Paribas (based on Business Recorder)

Pair's Outlook
The US Dollar weakened against the Sterling on Tuesday, amid the US ISM Manufacturing PMI showing signs of contraction. However, the weekly PP prevented any substantial gains, despite the Cable's attempts to climb over 1.51. The same resistance is likely to cause the pair to bounce back and technical studies are supporting this outcome. Meanwhile, the Nov low at 1.5026 remains the closest demand, but in wake of fundamental data the GBP/USD could fall towards the second target, namely the cluster around 1.4985.

Traders' Sentiment
Traders are equally divided between the bulls and the bears today. The number of orders to sell the British Pound added three percentage points, rising to 56% in the 100-pip range from the spot.

© Dukascopy Bank SA
© Dukascopy Bank SA


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