© Dukascopy Bank
"I can't see [British Pound] breaking through $1.6000 against the dollar in the near-term"
- Adrian Schmidt, currency strategist at Lloyds Banking Group (based on Reuters)
Industry outlook
The price tumbled just before hitting 1.5913 (200 day ma) and is now expected to penetrate support at 1.5727. Subsequent levels at 1.5645 and 1.5580 should follow due to negative short- and long-term outlooks.
Traders' sentiment
The Cable remains overbought, since the majority of traders (75%) are holding short positions, expecting the American Dollar to appreciate relative to the British Pound.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 1.5837, whereas R2 and R3 are situated at 1.5896 and 1.5929, accordingly.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5745. The breakout of this line will pave the way for the price to test S2 at 1.5712 and S3 at 1.5653.
© Dukascopy Bank