© Dukascopy Bank SA
"Post the Fed's meeting, traders may be squaring up long USD positions, whilst others are reluctant to put on new positions into year-end."
- BNZ (based on Reuters)
Pair's Outlook
The Cable ignored rather weak US fundamentals yesterday, as bears took over the market after the UK Public Sector Borrowing results were published. As a result, the British Pound dropped 60 pips, thus, breaching the falling wedge's lower border, also making it the seventh slump in a row. Nevertheless, the pair might still return within the pattern's borders today if the monthly S1, now the closest resistance, is overcome. Technical studies are no longer giving bearish signals, increasing the possibility of the bullish momentum to be regained, while the weekly S1 is to hold the losses.
Traders' Sentiment
More traders expect the GBP to outperform the USD, namely 68% of them. Meanwhile, the share of buy orders edged up from 47 to 61%.
© Dukascopy Bank SA