© Dukascopy Bank
"Sterling has strongly rejected any move below $1.54 on a couple of occasions and we might see it continue to go a little higher, but above $1.58 it will struggle"
- FXPro (based on Reuters)
Industry outlook
The Cable is expected to soar up to 1.5770/80, after it breaks though 1.5680 resistance. The initial support may be found at 1.5618, while subsequent lines are located at 1.5579 and 1.5544.
Traders' sentiment
Traders' sentiment remains rather bearish on GBP/USD, as the overwhelming majority (74%) of traders stay short on it. However, 26% of market participants expect the British Pound to appreciate.
Long position opened
Major market participants are likely to close their long positions at the key resistance levels. The primary short-term target will be reached at 1.5734. The breakout of this level will pave a way for a bullish run up to 1.5780 and then to 1.5824.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 1.5644. If the pair erodes this level, then it might rebound from S2 of 1.5600 or S3 of 1.5554.
© Dukascopy Bank