© Dukascopy Bank
"The UK numbers have been encouraging and sentiment is clearly improving"
- Lloyds (based on Reuters)
Industry outlook
Even though GBP/USD has rallied from a support at 1.5650/43, the bias for the Cable remains bearish, due to a tough resistance area situated at 1.5752/1.5833. Additional supports may be found at 1.5599, 1.5581 and 1.5500.
Traders' sentiment
The portion of buy orders has risen up to 45% from 31%, implying growing confidence that the British Pound is likely to gain in value relative to the Greenback.
Long position opened
Leading market participants, who have entered GBP/USD market with a buy trade, are expecting to close their positions at the key resistances at 1.5760, 1.5817 and/or 1.5887.
Short position opened
Bearish traders will pay attention to the key support levels in order to close their deals. The primary forecast target is 1.5633. If the pair erodes this level, then it might rebound from S2 of 1.5563 or S3 of 1.5506.
© Dukascopy Bank