© Dukascopy Bank
"As the dollar has come under pressure this has helped sterling, but levels in the low $1.54s may be worth selling into"
- CIBC (based on Reuters)
Industry outlook
The Cable is currently advancing, although its upward movement should slow down while the pair is approaching 55 day ma at 1.5614/60. In the long run GBP/USD is perceived as bearish with the possibility of falling down to 1.4260/29.
Traders' sentiment
The part of long positions is heavily outnumbered by the amount of shorts opened in the market. 37% of traders stay long on the pair and 63% of them have short sold the Euro.
Long position opened
Largest brokers set a new long position target as a break of 1.5514 is an encouraging bullish sign en route to 1.5542. If the uptrend remains, the third target for intraday trading will be 1.5591.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5437. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5388 or 1.5360.
© Dukascopy Bank