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"The markets were a bit surprised that the Fed was more hawkish than expected, especially considering that many people had thought that the board members this year would be more dovish than last year's."
- Okasan Securities (based on Reuters)
Pair's Outlook
GBP/USD pared some of the latest gains, but the pair is nonetheless in a good position to advance towards 1.53, namely the seven-month down-trend, as the support at 1.5150 stays intact. Alternatively, if the monthly S3 gets breached, the Sterling will likely decline to the weekly PP at 1.5050. However, the sell-off will have a low chance of stopping here, being that eventually the Cable should approach the 2013 low at 1.48.
Traders' Sentiment
The SWFX market seems to ignore price fluctuations for now, as the sentiment still does not exhibit sensitivity to changes in GBP/USD, 57% of open positions are long. At the same time, the difference between the buy and sell orders remains insignificant (-4 pp).
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