© Dukascopy Bank
"Given the decent pick up in economic activity since Q4, in particular PMIs, it seems that the UK economy should experience relatively decent growth in the first quarter of 2012"
- Commerzbank (Reuters)Industry outlook
Even though a zone at 1.5898/1.5927 is formed by a number of resistances, including 200 day ma, it is likely to be breached, as it poses no threat to the current bullish impetus. Intraday losses should be limited by supports situated at 1.5694 and 1.5650/43.
Traders' sentiment
Despite the increase in the share of opened bullish trades on the Cable, the sentiment has not been altered. 27% of traders expect the British Pound to appreciate relative to the Greenback, while 73% of them believe in an alternative scenario.
Long position opened
The price might rebound from the first resistance level at 1.5879, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 1.5936 and 1.5971.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5787. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5752 and at S3 of 1.5695.
© Dukascopy Bank