Dukascopy - Analytics


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    GBP/USD tests 23.60% Fibo once again

    © Dukascopy Bank SA
    "The big risk is that the minutes convey that many FOMC members are less convinced on a December hike than the market now thinks and could easily be swayed by market uncertainty or other events to wait another couple of meetings."
    - CitiFX (based on WBP Online)

    Pair's Outlook
    Yesterday the disappointing Industrial Production figures weighed on the US currency, giving the Sterling the upper hand and, thus, allowing the Cable to recover from intraday losses. Although the pair remained above the 1.52 level, the rally was only ten pips high, leaving the risks of GBP/USD declining open. The immediate support is likely to be breached, leading the Pound all the way down back to Sep low of 1.5106. Meanwhile, any hints from the FOMC Minutes concerning the delay of the Fed's rate hike should trigger another rally at least towards the nearest resistance, the 20-day SMA.

    Traders' Sentiment
    Even though there are even more bears (61%) today (previously 60%), the number of sell orders dropped from 59 to 53%.

    © Dukascopy Bank SA

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