© Dukascopy
"Real consumer spending is likely to continue to fall sharply for some time to come [in the UK]"
- Capital Economics (based on WSJ)
Industry outlook
For now GBP/USD has managed to stabilize at 1.5720 after penetrating 1.5825. Nevertheless, this is only considered to only a near-term base before it slides down to 1.5632, then 1.5272 and eventually 1.5050.
Traders' sentiment
Traders' sentiment in GBP/USD market is currently more or less stable, as 47.6% of liquidity consumers continue to hold long positions and 52.4% of them keep on staying short.
Long position opened
Largest brokers set a new long position target as a break of 1.5809 might become an encouraging bullish sign en route to 1.5871. If the uptrend remains, the third target for intraday trading will be 1.5992.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5688. If the price continues the downtrend, the dealers might wait for the British Pound to depreciate down to 1.5628 or 1.5507 American Dollars.
© Dukascopy