GBP/USD in quiet trade; awaits US GDP data
"With a rate hike seemingly priced in, market views are that the dollar could fall after the Fed delivers a hike in December, focus is shifting to when the second rate hike would be, and how many times the Fed could hike rates next year."
- Barclays (based on Reuters)
Pair's Outlook
Although no significant level was crossed yesterday, the Cable still suffered a rather serious decline. The weekly S1 was able to keep the pair afloat, but according to technical studies—another slump is on the way. The bottom floor is estimated to be located at 1.5070, whereas the weekly S2 and the lower Bollinger band around 1.5030 should prevent any further losses. Meanwhile, a chance of the GBP/USD regaining the bullish momentum exists, creating a possibility for the Sterling to retake the 23.60% Fibo and even 1.52.
Traders' Sentiment
Bears are now outnumbering the bulls by only 2% points. At the same time, the number of buy orders increased as well, but the commands take up only 36% of the market (previously 30%).
- Barclays (based on Reuters)
Pair's Outlook
Although no significant level was crossed yesterday, the Cable still suffered a rather serious decline. The weekly S1 was able to keep the pair afloat, but according to technical studies—another slump is on the way. The bottom floor is estimated to be located at 1.5070, whereas the weekly S2 and the lower Bollinger band around 1.5030 should prevent any further losses. Meanwhile, a chance of the GBP/USD regaining the bullish momentum exists, creating a possibility for the Sterling to retake the 23.60% Fibo and even 1.52.
Traders' Sentiment
Bears are now outnumbering the bulls by only 2% points. At the same time, the number of buy orders increased as well, but the commands take up only 36% of the market (previously 30%).