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GBP/USD holds trade at two-month high

© Dukascopy Bank SA
"Currency markets went mad. There were extreme movements across several major currency pairs with the dollar getting stretched both directions. The pound, euro and yen rallied whilst commodity currencies got trounced."
- CMC Markets (based on WBP Online)

Pair's Outlook
The Sterling skyrocketed against the US Dollar on Monday, amid the market turmoil and the Fed's September rate hike being postponed. Even though volatility reached the 1.58 major level, the pair still closed at 1.5759, just above the immediate resistance cluster. The situation appears to have calmed down today, as the Cable is stuck between the weekly R1 and the Bollinger band. Focus shifted back to the fundamental data, which is likely to cause the GBP/USD to break out of this cage in either direction. Technical studies retain  mixed signals, suggesting the pair is to remain flat.

Traders' Sentiment
Market sentiment remains unchanged, with bulls taking up 49% of the market. The portion of buy orders declined from 68 to 61%.

© Dukascopy Bank SA

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