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"There could be a slightly less dovish tinge to the MPC and in the budget there is no real reason to downgrade growth again. We have got stability coming through in the data released this year"
- Rabobank (based on Reuters)
Industry outlook
After breaching resistance at 1.5859 (200 day ma) the Cable might keep present bullish momentum until 1.5992 is reached. This would shift a focus to supports situated at 1.5773, 1.5755/45 and 1.5694, since the resistance is unlikely to give in.
Traders' sentiment
The overwhelming majority of traders (70%) are currently holding short positions on GBP/USD, increasing the possibility of the pair starting to squeeze the shorts, as SWFX sentiment index is a contrarian indicator.
Long position opened
The break of the short-term resistance line 1.5930 would pave the way for the pair to rise up to 1.5968. The clearance of the second daily resistance level would establish a new target for traders at 1.6022.
Short position opened
Bearish market players will pay attention to a near-term support at 1.5838. The downtrend continuation will establish following targets for traders: S2 at 1.5784 and S3 at 1.5746.
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