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"Low inflation and the recovery in wage growth [in the UK] are helping to stimulate consumer demand, but the slowdown in the global economy and tight margins mean retailers won't get ahead of themselves as we head into autumn."
- CBI (based on WBP Online)
Pair's Outlook
The GBP/USD currency pair reached the lowest point since August, as it stabilised at 1.5148. There are no signs of a potential recovery yet, and the technical indicators are also giving bearish signs, suggesting the Cable is to extend its decline today as well. The monthly S1 and the 23.60% Fibo keep providing resistance, but with the August low broken, immediate support is now located at 1.5066 in face of the Bollinger band. However, a rally is still possible if the US fundamentals disappoint today.
Traders' Sentiment
Both net positions and net orders improved. There are now 63% of traders holding long positions (previously 62%), whereas the portion of commands to acquire the Sterling increased from 51 to 58%.
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