- Commonwealth Foreign Exchange (based on CNBC)
The Cable was able to almost completely recover from its intraday loss, as the FOMC minutes were interpreted as dovish. The weekly S2 at 1.4255 keeps providing immediate resistance and is likely to prevent the GBP/USD from edging lower. However, technical studies remain in favour of the scenario, implying the Sterling could remain above the 1.43 major level. Meanwhile, the closest area to limit the gains is located just under the 1.44 mark, but is unlikely to be reached today.
Today 58% of all open positions are long, compared to 63% on Wednesday. At the same time, the number of orders to acquire the Sterling increased from 52 to 56%.