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"The Fed remains data dependent and so upcoming gauges of U.S. inflation, wages and jobs gains will be very closely watched. As it stands now, the market may be pricing in an overly negative economic scenario that results in no further rate hikes this year."
- Commonwealth Foreign Exchange (based on CNBC)
Pair's Outlook
The Cable was able to almost completely recover from its intraday loss, as the FOMC minutes were interpreted as dovish. The weekly S2 at 1.4255 keeps providing immediate resistance and is likely to prevent the GBP/USD from edging lower. However, technical studies remain in favour of the bullish scenario, implying the Sterling could remain above the 1.43 major level. Meanwhile, the closest area to limit the gains is located just under the 1.44 mark, but is unlikely to be reached today.
Traders' Sentiment
Today 58% of all open positions are long, compared to 63% on Wednesday. At the same time, the number of orders to acquire the Sterling increased from 52 to 56%.
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