© Dukascopy
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- Bank of England (based on WSJ)
Industry outlook
For now the price is likely to make a correction, following which GBP/USD is anticipated to carry on sliding down. The initial resistance and support levels are situated at 1.5522 and 1.5409 respectively.
Traders' sentiment
A great part of traders has lost confidence in the British pound after yesterdayВЎВ¦s news, dragging the portion of longs in the market down to 63.54%, while the amount of shorts has gone up to 36.46%.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 1.5535. If the pair manages to go through this level, further resistances are situated at 1.5633 and 1.5863.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5305. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5173 and at S3 of 1.4943.