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"Retail sales are a massive part of the recovery so the number was in focus. That's why it had such a big impact on the pound. In the short term, it looks like there is more momentum behind sterling-dollar however I would be cautious holding the pound as we head into the fourth quarter."
- Monex Europe Ltd. (based on Bloomberg)
Pair's Outlook
It seems that 23.6% Fibo (September rise) is stronger support level than anticipated as it sent the pair back above 1.60 and accelerated uptrend support. However, 1.616 should cap the pair in the nearest future and any rises above it should be short lived. 1.589 remains the most important interim target if the pair dips below the 1.60 once again as this could provoke the pair to trail to 1.54.
Traders' Sentiment
It seems that fair share of pending bullish orders was triggered yesterday—gauge decreased from 66% to 56%. This weakened bearish sentiment on the pair. Bears now account for 65%, in comparison to 69%, of the market participants.
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