© Dukascopy Bank
"We still see more downside in euro/sterling, and it will probably be the same story in Cable"
- Commerzbank (based on Reuters)
Industry outlook
After testing a strong support level situated at 1.5363/47, the Cable is likely to bounce off it and advance. Nonetheless, the rally is unlikely to penetrate through both resistances at 1.5698 (55 day ma) and 1.5721.
Traders' sentiment
SWFX Market Sentiment Index indicates current neutrality on GBP/USD. The share of traders holding long positions (49.08%) and the percentage of traders with short positions (50.92%) remains on the same level.
Long position opened
The initial resistance level for intraday trading is 1.5507. Bulls might establish additional targets at 1.5532 and 1.5536 if the Pound appreciates even more.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 1.5451, 1.5420 and 1.5395.
© Dukascopy Bank