© Dukascopy Bank SA
"The thing that's unusual about this one is that most of our storms develop out over the Atlantic so that they've done all their strengthening and deepening by the time they reach us. This one is developing as it crosses the UK, which is why it brings the potential for significant disruption ... and that doesn't happen very often."
- Met Office (based on Reuters)
Pair's Outlook
Pair failed to gain momentum after a major rally few weeks ago as October high kept the pair at bay. At the moment it is testing weekly PP. Taking in to account these developments and clearly bearish sentiment, we anticipate the pairs failure at the October high. Peak above it is possible, but seems very unlikely. In the event of the failure we expect the pair to dip to the uptrend support and then , possibly, to 1.5966.
Traders' Sentiment
Similarly to the other old continent currency, the euro, market sentiment has not changed a bit and only noticeable change is in distribution of pending orders. Bears continue to hold 69% of all open positions in the market, but bullish side of pending orders increased by 8% and is at 59% gauge.
© Dukascopy Bank SA