© Dukascopy Bank
"Sterling looks solid but uninspiring"
- Societe Generale (based on Reuters)
Industry outlook
GBP/USD should be unable to reach 1.5992. Even if it climbs over 1.5927, rallies should be tepid. Near-term support may be found at 1.5755/45, while subsequent levels are situated at 1.5643 and 1.5235.
Traders' sentiment
Even though the gap between the amounts of bulls and bears in the market has narrowed down, most of the traders (67%) prefer staying short on the Cable, expecting the US Dollar to appreciate relative to the Sterling.
Long position opened
While trading this pair, investors should pay attention to the immediate resistance level at 1.5897. If the pair manages to go through this line, further resistances are situated at 1.5933 and 1.5967.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5827. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5793 or 1.5757.
© Dukascopy Bank