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"With the futures market pricing in a close to 70 percent odds of a December rate action, USD strength is likely to persist."
- IG Securities (based on Business Recorder)
Pair's Outlook
Last Friday the Sterling suffered a heavier-than-anticipated loss against the US Dollar, slumping over 100 pips, therefore, erasing all weekly gains. The 23.60% Fibo managed to stop the fall and should cause a rebound; however, trade opened under the 23.60% Fibo today, diminishing the Cable's ability to appreciate. Meanwhile, the immediate support is located at 1.5114, namely the weekly S1, but is unlikely to hold the pair from falling deeper in case of a dovish Fed statement. On the other hand, the weekly PP and 20-day SMA should prevent the GBP/USD from rising higher if bulls take over.
Traders' Sentiment
Bears remain in the majority, taking up 57% of the market (previously 61%). The share of sell orders edged up from 58 to 70%.
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