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"If QE is 25 billion, sterling could stabilise and even rally. If it is 75 billion, sterling may come under pressure"
- UBS (based on Reuters)
Industry outlook
En route to 1.6170/90 (200 week ma) the Cable is going to encounter an initial resistance at 1.5890 and a subsequent level at 1.5960 (200 day ma). Supports at 1.5640/35 and 1.5570 should prevent GBP/USD from extensive dips.
Traders' sentiment
Traders' sentiment has not changed since the previous report yesterday. Bears are currently in absolute majority, composing the market for 77%. Accordingly, bulls are only 23% of it.
Long position opened
Largest brokers set a new long position target as a break of 1.5907 is an encouraging bullish sign en route to 1.5982. If the uptrend remains, the third target for intraday trading will be 1.6083.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5731. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5630 or 1.5555.
© Dukascopy Bank