© Dukascopy
Further BoE stimulative action remains firmly on the cards for early-2012"
- IHS Global Insight (based on WSJ)
Industry outlook
The cable is not anticipated to be held by a support at 1.5848. On the contrary, GBP/USD is expected to tumble down to 1.5632 or even 1.5272, as its advancement will be immediately stopped by 1.6095 and 1.6140.
Traders' sentiment
GBP/USD traders' sentiment has somewhat consolidated. The quantity of market participants holding longs is 37.87%, being a signal that the pair is oversold. At the same time the majority of traders, being 62.13%, expect the greenback to appreciate.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance is at 1.5910, whereas R2 and R3 are situated at 1.6046 and 1.6163 accordingly.
Short position opened
Bearish market players will pay attention to a near-term support at 1.5875. The downtrend continuation will establish following targets for traders: S2 at 1.5813 and S3 at 1.5697.
© Dukascopy