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    GBP/USD to weaken again after channel breach

    © Dukascopy Bank SA
    "The flow is shifting back in favour of the dollar, hurt recently by spotty economic data and receding likelihood of an early rate hike. Comments by policymakers has also helped."
    - FPG Securities (based on Reuters) 

    Pair's Outlook
    The Cable suffered heavy losses on Friday, amid better-than-expected US fundamentals. As a result, the Sterling breached the channel lower trend-line, breaking out of the pattern, and found support at 1.5475, namely the 20-day SMA. The GBP/USD opened trade under the mentioned SMA, therefore, more downside volatility is anticipated today, with immediate support located at 1.5408, represented by the 200-day SMA. Technical indicators are now giving mixed signals, unable to confirm the scenario.

    Traders' Sentiment
    SWFX traders' sentiment slightly improved, as 46% of all positions are now long (previously 45%). The portion of buy orders dropped by 20 percentage points, as they now take up 49% of the market.

    © Dukascopy Bank SA

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