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"It all depends on how the U.S. stocks and bond yields will perform after the event. But I have an image that profit-taking will kick in because there would be no more of the material that was moving the market."
- Yuzo Sakai, Tokyo Forex & Ueda Harlow (based on Market Watch)
Pair's Outlook
On Tuesday the Sterling suffered another gradual decline against the US Dollar, with trade closing only at the second support, namely the weekly S1. With the US rate hike looming closer the Cable is poised for a third consecutive day of weakness, which could lead the pair under 1.49 and, thus, pierce the support trend-line. Even though the trend-line is also bolstered by the monthly S1 and weekly S2, losses might exceed this area if the Fed delivers an interest rate hike. On the other hand, a much more dovish statement today is likely to cause a rally that would touch the resistance line around 1.5260.
Traders' Sentiment
Traders still expect a bullish reaction from the GBP/USD, as 59% of all positions are long. The share of buy orders slid from 51 to 43%.
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