© Dukascopy Bank
"Our view is still that this period of dollar weakness we've seen this year will prove temporary so we're not looking for cable to break above back into the $1.60s"
- BTM-UFJ (based on Reuters)
GBP/USD eyes 1.5770/80, although the current bullish impetus is too weak to be able to challenge this resistance level. Therefore the focus is on 1.5659 with an additional support located at 1.5570/45.
Traders' sentiment
The traders' sentiment is bearish on the Cable. Accordingly, the amount (26%) of bullish trades is considerably outnumbered by bearish ones which in turn comprise 74% of the total number of positions.
Long position opened
The break of the short-term resistance line 1.5734 would pave the way for the pair to rise up to 1.5780. The clearance of the second daily resistance level would establish a new target for traders at 1.5824.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 1.5644, 1.5600 and 1.5554.
© Dukascopy Bank