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"If they [the Fed] are extremely dovish it could support cable, but then again a gloomy set of rhetoric could undermine risk appetite"
- Rabobank (based on Reuters)
Pair's Outlook
GBP/USD is struggling with an interim resistance situated at 1.5530/53 and for now appears to be unable to overcome it in order to reignite bullish momentum, which is unlikely to emerge in the near-term, being that most of technical studies point to the downside. Therefore we expect the Cable to focus on supports that may be found at 1.5443 and 1.5389/85.
Traders' Sentiment
Traders' sentiment index is neutral towards the Cable, since equal amounts of market participants have chosen to enter the market with buy and sell orders, meaning there is no consensus among traders with respect to direction the currency pair will head to. Nonetheless, if GBP/USD surges, it will encounter a lot of resistance, as the portion of sell orders is 64%.
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