© Dukascopy Bank
"Sterling is moving along with other risk assets, and the trend looks good for further gains"
- Forex.com (based on Reuters)
Industry outlook
GBP/USD has bounced off 200 day ma at 1.5937 and is now headed down to 1.5730, leaving less chance for further gains. A close below the latter level is likely to result in a slide down to 1.5585 (55 day may).
Traders' sentiment
Despite the rise in the share of long positions the traders' sentiment has not changed significantly. Bulls form 24% of market participants, while bears are 76% of them.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 1.5896. If the pair manages to go through this level, further resistances are situated at 1.5978 and 1.6027.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5765. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5716 and at S3 of 1.5634.
© Dukascopy Bank