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"The FOMC is making a pretty bold call here. The economy's momentum is strong enough to push through the headwinds of slower world growth."
- Bank of Tokyo-Mitsubishi UFJ Ltd.( based on Bloomberg)
Pair's Outlook
The strong supply area around 1.62 managed to stop bulls from pushing the exchange rate higher and the British currency lost considerable ground against the Buck, fuelled by news from the Fed. The pair even crossed a support at 1.6089, represented by weekly pivot point and 20-day SMA. If the cross breaches the next demand area at 1.5994, then a decline down to 1.59 is almost inevitable in the medium-term, as suggested by weekly technical indicators, which give strong bearish signals at the moment.
Traders' Sentiment
It seems that many short traders took profit from yesterday's drop of the pair, as now long positions take up 68% of all. Still, 58% of pending orders are set to sell the Cable in 100-pip range.
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