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"Whether cable is going up or down very much depends on whether expectations of UK or U.S. rates are blowing hot or cold. It's very data dependent."
- Rabobank (based on Reuters)
Pair's Outlook
The Cable did not extend the latest decline yesterday, as the market confirmed support at 1.53, represented by the monthly PP and 20-day SMA. However, the bias is negative, and any attempts of the Sterling to rally should be stopped at 1.55, where the monthly R1 merges with the 100-day SMA and this month's highs. Nevertheless, we expect the bears to be able to push the price beneath 1.53 in the nearest future, which in turn will imply a sell-off to the Oct 12 low and 23.6% Fibo (07.2014-04.2015 down-move) at 1.52.
Traders' Sentiment
There is currently no significant difference between the longs (53%) and shorts (47%), nor there is any gap between the numbers of pending buy (50%) and sell (50%) orders.
© Dukascopy Bank SA