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"The dollar will continue to find some support on the view that the Fed will begin normalizing policy."
- Mizuho Corporate Bank (based on WBP Online)
Pair's Outlook
The GBP/USD currency pair behaved according to the forecast, as it pierced the immediate support, but failed to reach the tough cluster around 1.5180. The Cable is expected to rebound today, amid an anticipated dovish statement from the Fed's Chair and a decline in Core Durable Goods Orders. The cluster around 1.5350 is now providing resistance, while the pair remains supported by a group of levels just under the 1.52 major level, which altogether should limit any downside volatility if such occurs.
Traders' Sentiment
Both net orders and net positions improved over the day, as 59% of traders are now long the Sterling (previously 56%) and purchase orders take up 61% of the market, up from 43% yesterday.
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