© Dukascopy Bank
"The [UK] figures paint a generally weak picture, with unemployment rising further and pay growth weakening sharply"
- Capital Economics (based on Reuters)
Industry outlook
For now GBP/USD is capped by a tough resistance level at 1.5721/1.5833, which should be able to halt near-term rallies. Therefore the bias is bearish for the pair with targets at 1.5524 and 1.5397.
Traders' sentiment
Being that the difference in numbers between long (47%) and short (53%) positions is not great, traders' sentiment is currently neutral on the Cable
Long position opened
The initial resistance level for intraday trading is 1.5728. Bulls might establish additional targets at 1.5783 and 1.5822 if the British Pound appreciates more.
Short position opened
The immediate support line is at 1.5634. Should the price step even lower, it will encounter subsequent levels at 1.5595 and 1.5540, where recovery might start.
© Dukascopy Bank