© Dukascopy Bank SA
- Goldman Sachs Group Inc. (based on Bloomberg)
Pair's Outlook
The support trendline (lower bound of the five-week channel) we expected to hold the pair failed before the Cable gained a solid foothold above 1.34 dollars, giving way for a sell-off. The immediate supports are represented by the 55-day SMA and monthly PP, but the current decline is likely to rush past the end-of-August lows of 1.3050 towards 1.2850, which proved to be significant both in July and August. In order for the pair to restore the bullish outlook, the price needs to close above 1.34 and confirm this level as the new support.
Traders' Sentiment
The number of bears decreased with depreciation of the Sterling—their share went from 57 to 52%. Nevertheless, there was no change whatsoever in the distribution between the buy (44%) and sell (56%) orders.
© Dukascopy Bank SA