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GBP/USD on the edge of breaching long-term support

© Dukascopy Bank SA
"Fed policymakers appear to be trying to keep the possibility of a December rate hike alive since their last policy meeting."
- Barclays (based on CNBC)

Pair's Outlook
The Cable lost over 170 pips on Thursday, suffering from BoE governor's dovish statement.  As a result, the strong immediate support was pierced, causing the GPB/USD to stabilise near the seven-month up-trend. Although the 23.60% Fibo, the Bollinger band and the weekly S1 are bolstering the support line, the broadly stronger US Dollar might cause another decline towards the Sep low of 1.5106. A perfect scenario is a rebound from the up-trend, therefore, preserving the current triangle pattern. Technical studies, however, are now giving bearish signals in the daily timeframe.

Traders' Sentiment
Market sentiment remains bullish, now at 53% (previously 51%), while the portion of buy orders lost 10% points, falling to 53%.

© Dukascopy Bank SA


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