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"There's quite a lot of UK data coming out this week, but it is still all about the Fed. The dollar is going to be moved by that, and that should be the dominant factor for cable."
- Societe Generale (based on Reuters)
Pair's Outlook
There is a high chance we are going to see a bullish correction in the nearest future after yesterday's drop. The Cable has also just hit the 200-day SMA, which further increases the probability of a rally. The immediate resistance is at 1.5370/63, created by the weekly pivot point and the 20-day SMA. Soon thereafter the currency pair is expected to resume the decline. A close below 1.5318 will imply a sell-off back down to the August low.
Traders' Sentiment
A portion of the bulls increased with a dip in Pound's price. Right now they take up 59% of the market (52% yesterday). On the other hand, the percentage of buy orders fell from 55% down to 39% compared to the Tuesday's data.
© Dukascopy Bank SA