There's no misinterpretation of it - here it is: http://www.oxforddictionaries.com/definition/english/ponce
It's a derogatory term. It was obviously not meant to be in this context, but ideally a different word should have been used IMO.
LOL
Nobodys denying its an insult, but you said it was homophobic, which its not, use some of that top 1% bruh.