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"The market thinks the Bank of England will raise rates only after the Fed will raise rates...There's a chance that sterling could fall further against the dollar."
- Barclays (based on CNBC)
Pair's Outlook
The Cable failed to remain above the 1.54 major level, as the monthly S1 was unable to hold the losses. However, the Bollinger band provided sufficient support, causing the GBP/USD to stabilise at 1.5362. The Sterling is expected to rebound, as the immediate support cluster today is even stronger, represented by the Bollinger band, July low and 200-day SMA. Meanwhile, the nearest support lies out of reach, while gains should be limited by 1.5440, as this area prevented the Pound from edging higher on several occasions.
Traders' Sentiment
Bulls gained some numbers, as 53% of all positions are now long (previously 51%). At the same time, the portion of orders to acquire the Sterling lost 12 percentage points, down to 40%.
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