© Dukascopy Bank SA
- ANZ Bank New Zealand (based on Bloomberg)
Pair's Outlook
The Cable keeps retreating after it topped out at 1.3450, and the rate is likely to fall some 70 pips more before we see a recovery back to the upper bound of the channel. At the moment GBP/USD is testing a support trendline at 1.3270, which has been recently broken, but still could prove to be useful. Once the bulls regain control, the first target will be at 1.3320, while a more serious test of the bullish momentum is to happen at circa 1.34, where the monthly R1 coincides with the August high, Bollinger band and weekly R1 level.
Traders' Sentiment
There has been a noticeable change in traders' attitude towards the Sterling over the weekend. There are now significantly less short positions than there were on Friday—their share fell from 57 to only 51%, meaning the sentiment is now neutral.
© Dukascopy Bank SA