© Dukascopy
"Today's figures strengthen the MPC's argument that consumer price inflation will fall back to below the 2% inflation target in time"
- Capital Economics (based on WSJ)
Industry outlook
From above the price's upward movement will be limited by resistances at 1.6087, 1.6139 and by 1.6139 as well. Therefore the initial target for GBP/USD is at 1.5842, which would give a way for a further decline to 1.5632 and 1.5272.
Traders' sentiment
Market participants are very bearish on GBP/USD currency pair which is extremely oversold at the moment. Only 27.65% of traders expect the sterling to gain in value, while 72.35% of them anticipate an alternative scenario.
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 level is at the level of 1.6138, whereas R2 and R3 are situated at 1.6213 and 1.6411 accordingly.
Short position opened
Key support for GBP/USD intraday trading is situated at 1.5940. In case S1 is penetrated, traders with short positions are likely put their T/P orders at 1.5819 and 1.5622.
© Dukascopy