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"Such a cautious [Fed] stance suggests a rate hike in April is unlikely, and there are increased doubts that the Fed will be ready to move in June."
- Westpac (based on CNBC)
Pair's Outlook
On Tuesday the British currency gained 130 pips against the US Dollar, surging due to Fed Yellen's dovish statement. Sufficient supply in face of the weekly R1 caused the Cable to close trade just under the 1.44 major level, but the GBP/USD currency pair now has the potential to edge higher. In case the weekly R1 is breached, the next target will be the monthly R1 and the Bollinger band around 1.4465. However, technical studies retain their mixed signals, suggesting that a possibility of the Sterling retreating towards the 1.43 mark persists, with the 20 and 55-day SMAs preventing the Pound from falling deeper down.
Traders' Sentiment
Bulls gave in today, as there are now 48% of open positions, compared to 63% on Tuesday. At the same time, the number of orders to acquire the Cable dropped from 56 to 43%.
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