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"It isn't just the timing of liftoff the Fed cares about, but the whole path of federal funds rate. I think they do probably want to limit the extent of tightening that people expect, at least at the beginning."
- Former New York Fed staff member (based on Bloomberg)
Pair's Outlook
After six consecutive days of decline, the GBP/USD pair managed to gain value and erase some of losses that occurred during this and the previous week. The Cable rose above the monthly S2 at 1.5662 and closed at 1.5672 on Wednesday. However, the bearish sentiment continues to prevail on the market, meaning that the yesterday's recovery could be only short-term. The pair is assumed to set a new 2014 low in the foreseeable future, as suggested by daily and weekly technical studies.
Traders' Sentiment
At the moment 56% of traders still hold long positions on the Pound, the same as 24 hours ago. Pending orders, however, remain negative in relation to GBP/USD in both 50 and 100-pip ranges.
© Dukascopy Bank SA