GBP/USD hovers above 1.5049/37

Source: Dukascopy Bank SA
© Dukascopy Bank SA
"Overall, we expect the Fed to maintain its stance on asset purchases and forward guidance. At the press conference, we expect the chairman to continue to downplay the costs of asset purchases while highlighting the benefits."
- Barclays Capital (based on Reuters)

Pair's Outlook

The Cable proves to be unable to gain upward momentum, as a strong resistance zone 1.5243/27 discourages bulls from betting on appreciation of the Sterling. As a result, the currency pair stays flat just above 1.5049/37. However, the technical indicators are bearish at the moment, but additional supports are to be found at 1.4898/66 and 1.4829 in case a dip emerges.

Traders' Sentiment
After a considerable contraction the portion of long positions has stabilised at 61%, meaning that traders are still waiting for the British Pound to start a recovery despite the strong bearish tendency in the pair. As for the orders placed on GBP/USD, a majority (57%) of them are to acquire the greenback.
© Dukascopy Bank SA

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