© Dukascopy Bank
"The BoE inflation report will presumably be fairly dovish and may set sterling back a little"
- Standard Bank (based on Reuters)
Industry outlook
The Cable continues to lose ground, as it has already breached a support at 1.5730. In the short-term the pair is expected to challenge 1.5660 and 1.5601 (55 day ma). In case these supports are broken, the following levels are situated at 1.5580 and 1.5546/44.
Traders' sentiment
Even though the share of bullish traders has increased up to 33%, it did not bring any significant changes to the overall sentiment, which is presently bearish, since 67% of all the positions are short.
Long position opened
Investors should pay close attention to the identified resistance levels for the pair at 1.5760, 1.5828 and 1.5886.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5634. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5576 or 1.5508.
© Dukascopy Bank