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"UK growth has been on a gently slowing path over the past 18 months, despite interest rates remaining at exceptionally low levels."
- Andy Haldane, BoE chief economist (based on WBP Online)
Pair's Outlook
In spite of all positive signs, the Sterling suffered a rather heavy loss against the US Dollar on Friday, amid rising conviction of the Fed hiking in December. The Nov low at 1.5026 was able to limit the losses and should cause the Cable to undergo a correction and rebound today. The immediate resistance to prevent any substantial gains is located only at 1.5084, but is unlikely to be reached. At the same time, risks of the GBP/USD edging even lower persist, with the weekly S1 and the Bollinger band providing support around 1.4970.
Traders' Sentiment
Market sentiment keeps improving, with 57% of all traders holding long positions today. The gap between the buy and the sell orders narrowed. Orders take up 47% and 53% of the market, respectively.
© Dukascopy Bank SA