GBP/USD to fall under 1.55; risks dropping to two-week low

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"The market is still refusing to price in Fed hikes. 85 percent of economists surveyed see Fed lift off in September, but the market is only pricing in a 10-basis-point move in September at 45 percent." 
- IG (based on CNBC) 


Pair's Outlook 
Even though the GBP/USD currency pair reached the immediate support on Friday, trade still managed to close above the 1.55 major level. The 20 and 55-day SMAs keep providing substantial resistance around 1.5540 today, which should cause the Cable to edge lower again, despite the attempts to regain the bullish momentum over the weekend. The closest support is still represented by the weekly S1, now at 1.5435; although the Sterling is expected to fall under 1.55, the weekly S1 is unlikely to be reached. 

Traders' Sentiment 
Bullish traders' sentiment returned to its Thursday's level of 51%. The number of orders to acquire the British currency declined nine percentage points. The orders now take up 41% of the market.
© Dukascopy Bank SA

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