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- Shinichiro Kadota, Barclays (based on The Business Times)
Pair's Outlook
Ahead of the FOMC meeting and the Federal Funds Rate decision the Sterling was unable to post gains against the US Dollar, having closed with a 24-pip loss. Should the Funds Rate remain unchanged today, the Sterling will be able to reach a new two-month high, meaning the immediate resistance area around 1.2750 will be overcome. Technical indicators also suggest the positive outcome is due, but we should not rule out the possibility of bears taking over, in which case the broadening rising wedge's support line at 1.2533 could be not only put to the test, but even pierced.
Traders' Sentiment
Bullish market sentiment remains unchanged at 59% today, whereas 62% of all pending orders are to sell the British currency, compared to 59% on Tuesday.
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