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"The statement was largely dovish. People were expecting the Fed to acknowledge the firmer inflation prints and the drop in the unemployment rate."
- Credit Agricole (based on Reuters)
Pair's Outlook
Although at first the Cable appeared to be intimidated by the resistance at 1.70, it continues to trade right next to the 2009 highs, meaning the pair is unwilling to retreat. Moreover, the weekly and monthly technical studies are largely bullish, suggesting the Pound is likely to succeed in the end. If this is the case, the 16-month rising trend-line at 1.7320 should become the next target. Alternatively, a sell-off from 1.70 will take the price down to 1.6836/12.
Traders' Sentiment
Right now three our of four SWFX market participants expect the Sterling to lose value relative to the greenback, as they are presently holding short positions. As for the orders, 42% are to purchase and 58% are to sell the U.K. currency.
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