GBP/USD to halt near 1.5596

Source: Dukascopy Bank
© Dukascopy Bank
"The view is that we will likely see the UK dip into a recession in H1. Economic weakness will be a constant reminder that the UK's AAA status is not guaranteed by any means" 
- Investec (based on Reuters)

пЃ® Industry outlook
The Cable has quickly sold off from 22 hour ma and is now heading toward 1.5596, which is likely to hold for some time. Although in the longer term this should be breached. A key resistance is situated at 1.5665.

пЃ® Traders' sentiment
GBP/USD pair is currently oversold, since the largest part of market participants (64.21%) hold bearish trades. On the other hand, 35.79% of FX players stay bullish on the pair, anticipating for the British Pound to appreciate relative to the Greenback.

пЃ® Long position opened
The break of the short-term resistance line 1.5720 would pave the way for the pair to rise up to 1.5764. The clearance of the second daily resistance level would establish a new target for traders at 1.5799.

пЃ® Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5641. If the price continues the downtrend, the dealers might wait for the price to slide down to 1.5606 or 1.5562.
© Dukascopy Bank

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