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"The Fed will want to start the ‘normalisation' process without invoking a strong reaction in currency markets, which would likely see the manufacturing sector suffer disproportionately."
- ING (based on FXStreet)
Pair's Outlook
The Cable was a few steps away from touching the major level of 1.51 yesterday, but rebounded from the daily low, with trade closing at 1.5161. Even though the immediate support remained intact, the Greenback is likely to drive the GBP/USD pair lower today, piercing that level and taking another shot at 1.51. However, weekly technical studies were bearish through all five days, suggesting the exchange rate could even drop to 1.50 today. The daily indicators, on the other hand, remain mixed, creating a possibility of another rally today, with the down-trend at 1.5280 getting confirmed.
Traders' Sentiment
Sentiment shifted to the bullish side, with 52% of all positions now long. Sell orders are now outnumbering the buy ones by 4% points.
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