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"As Fed rate-hike expectations are pushed back, stocks and commodities saw a big rebound and eased risk aversion."
- Sumitomo Mitsui Banking Corp (based on Business Recorder)
Pair's Outlook
Although the Sterling tested the immediate resistance in face of the weekly R1, the worse-than-expected UK Services PMI reading pushed the GBP/USD back under the 23.60% Fibo. The Cable once again has the Fibonacci retracement on its path, which not only kept the pair from appreciating during the previous week, but is now also bolstered by the weekly PP. Immediate support, on the other hand, rests at 1.5111, namely the weekly S1; this area could prevent the Pound from falling deeper against the stronger on risk appetite US Dollar.
Traders' Sentiment
The share of bulls returned to the last Monday's level of 60% (down from 64%). The number of buy orders also declined, from 65 to 48%.
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