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"The dovishness of Janet Yellen (Federal Reserve chair) has pushed rate hike pricing right out, so every time you get stronger data or stronger comments from the Fed you have this push-me, pull-me situation that buffets markets."
- National Australia Bank (based on Reuters)
Pair's Outlook
Fears of a ‘Brexit' kept weighing on the British Pound on Wednesday, but a rather dovish FOMC statement helped the Cable to erase most of intraday losses. As a result, the GBP/USD pair remained above the 1.41 major level. The Sterling is now expected to undergo a correction, but the exchange rate will doubtfully reach the immediate resistance at 1.4270, represented by the monthly and the weekly PPs, the 20 and the 55-day SMAs. Meanwhile, technical indicators retain mixed signals, suggesting that the pair could prolong its bearish trend and fall under the 1.41 mark, with the closest level to limit the losses being the weekly S1 at 1.4082.
Traders' Sentiment
Although not as strong as yesterday, but market sentiment remains bullish at 63%. The share of buy orders edged up from 62 to 69%.
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