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    GBP/USD risks sustaining sharper losses

    © Dukascopy Bank SA
    "The consequences of Brexit have put a summer UK interest rate cut squarely on the table, exacerbating negative sentiment toward UK-based assets." 
    - Western Union Business Solutions (based on Reuters) 


    Pair's Outlook 
    Due to BoE governor's statement on Tuesday the Sterling weakened substantially, breaching the 1.3230 support level and slumping down to the 1.30 major level. Even though technical indicators are giving mixed signals today, the Cable remains subject to more weakness. The weekly S2 at 1.2899 is the closest support today, but a much stronger cluster is located around 1.2660, represented by the weekly S3, the monthly S1 and the Bollinger band. However, we should not rule out the possibility of the Pound regaining the bullish momentum, amid a dovish Fed statement, which is scheduled for today. 

    Traders' Sentiment 
    There are 66% of all open positions being long today (previously 68%), while the number of orders to sell the Pound edged higher from 45 to 71%.
    © Dukascopy Bank SA

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