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"There may be some adjustment, but it is unlikely to see the current dollar-buying sentiment reverse ahead of the expected rate hike."
- Sumitomo Mitsui Trust Bank (based on Business Recorder)
Pair's Outlook
The 1.55 major level gave in last Friday, allowing the Cable to reach a fresh monthly low. Nevertheless, the GBP/USD currency pair still settled at 1.5490, namely the lower Bollinger band. The Sterling is expected to remain relatively unchanged on Monday, due to lack of substantial market movers; however, further weakness is possible if the Fed officials provide more insight on the interest rate hike. The nearest resistance rests at 1.5520, represented by the weekly PP; while the 100-day SMA and Bollinger band support the pair from below, attempting to limit the losses and cause a rebound.
Traders' Sentiment
Sentiment keeps drifting near equilibrium, as 52% of all positions are long today. Meanwhile, the share of buy orders slid from 56 to 49%.
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