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"We think markets remain under-priced for Fed Q4 policy tightening and continue to see scope for the USD to extend gains as markets shift towards our view."
- BNP Paribas (based on Reuters)
Pair's Outlook
Fed Yellen's rather hawkish statement helped the US currency to regain some ground, leaving the Cable relatively unchanged on Thursday, as the pair advanced only three pips. The Cable is likely to remain under pressure today, falling under the 1.52 psychological area. The support cluster around 1.5180 is the base case scenario target, with a possible drop as low 1.5130, namely the last level forming the given cluster. Technical studies, however, retain their bullish signals, suggesting the GBP/USD could rally above 1.53.
Traders' Sentiment
Bulls and bears remain unchanged since Thursday, taking up 59% and 41% of the market, respectively. The number of purchase orders, on the other hand, declined from 61 to 47%.
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