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"Recent data suggest that there is sufficient momentum in the US economy to push the various labor market slack measures further down, supporting the FOMC's confidence in the inflation outlook. Therefore, we see no reason to change our long held call for a December rate hike."
- Rabobank (based on WBP Online)
Pair's Outlook
The Cable ignored the positive US fundamental data on Friday, as the IMF's upbeat report on the UK economy boosted the British currency. However, the resistance trend-line was not reached, as the 55-day SMA limited the volatility and is caused the pair to suffer losses on Monday during the Asian session. Due to lack of market movers, the correction is likely to bring the GBP/USD down to the 1.5195 level, where the monthly PP coincides with the 23.60% Fibo. In case of a breach, the second target to stop the decline is located around 1.5135, namely the weekly PP and 20-day SMA.
Traders' Sentiment
Bulls and bears switched places on Monday, as 52% of traders are now holding short positions and the remaining 48% - long.
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