© Dukascopy Bank
"I do not imagine we are going to see more QE in the short term but if the [UK] economy shows mixed or softening conditions over the course of the summer it may come up for more serious contemplation"
- Michael Derks, FxPro (based on Reuters)
Industry outlook
Near term rallies of the Cable are expected to be tepid, following its recent test of a support at 1.6050. However, in the longer term perspective the bullish impetus is likely to strengthen and drag the price up to 1.6328, en route to 1.6425.
Traders' sentiment
Distribution of positions is becoming more balance on GBP/USD, since the share of bulls (39%) is increasing, whereas the number of bears (61%) diminishes.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 1.6188. If the pair manages to go through this level, further resistances are situated at 1.6230 and 1.6279.
Short position opened
Key support for GBP/USD intraday trading is situated at 1.6097. In case S1 is penetrated, traders with short positions are likely put their T/P orders at 1.6048 and 1.6006.
© Dukascopy Bank