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"You have some U.S. dollar strength, which might be partly Fed related, but you've also got some U.S. dollar strength because of the risk aversion."
- Westpac Banking Corp. (based on Bloomberg)
Pair's Outlook
The Cable sustained heavy losses on Tuesday, amid poor readings of the UK Public Sector Net Borrowing. The pair fell beyond the anticipated level of 1.54, reaching the third support at 1.5350, namely the weekly S1 and 200-day SMA. However, the given support has little chance of preventing another fall today, allowing the Sterling to reach a fresh weekly low. Five significant levels form a really strong support cluster around 1.5180, but the exchange rate is not expected to drop that low today.
Traders' Sentiment
There are slightly more traders with a positive outlook towards the Cable today, namely 56% (previously 51%). The share of buy orders, on the other hand, dropped from 54 to 43%.
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