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"It [the Fed keeping interest rates near zero] should be positive for risk."
- ABN AMRO Bank (based on Reuters)
Pair's Outlook
Although the four-month down-trend at 1.61 is no longer a ceiling, the dense resistance at 1.62 should be more than enough to prevent more weakness in the US Dollar. Apart from the 23.6% Fibo, which is the main element of the supply area, it is also strengthened by the weekly R1 and 55-day SMA. Moreover, six out of eight technical indicators on the weekly time-frame are giving ‘sell' signals, meaning the Sterling is a sell below 1.62.
Traders' Sentiment
Despite the Cable approaching its potential upper limit, most of the traders are bullish on the Pound—63% of open positions are long. As for the pending orders, 62% are to placed to sell the currency against the Dollar.
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