© Dukascopy Bank
"Our economists are sticking with a 50 billion pound extension [of QE by BoE] in August"
- RBS (based on Reuters)
Present rally is likely to be short-lived, since a tough resistance level situated at 1.5919 (200 day ma) should halt the pair's bullish advancement. Therefore a support at 1.5603/1.5580 (55 day ma) is still being targeted.
Traders' sentiment
The vast majority of market participants (73%) have preferred to acquire the American Dollar against the British Pound. Only 27% of traders stay long on GBP/USD.
Long position opened
The initial resistance level for the pair is 1.5859. If the price continues increasing, the investors will hold longs until the pair climbs up to 1.5918 or 1.6020.
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 1.5698, 1.5596 and 1.5537.
© Dukascopy Bank