GBP/USD headed towards 1.6390/58

Source: Dukascopy Bank SA
© Dukascopy Bank SA
There has been a "good stretch of strong growth for the U.K. economy."
- Nomura (based on MarketWatch)


Pair's Outlook

Being that the Cable is approaching yet another tough obstacle, this time it is the Jan high and the weekly R2 at 1.6390/58, there is a fairly high possibility of a pull-back. The bearish correction, if initiated, will be likely terminated at the former important resistance at 1.6237. Subsequently the rally may extend up to the highest level in 2011, namely 1.6745.

Traders' Sentiment

Since the last update the portion of bullish towards the British Pound traders has increased by three percentage points. Now the share of open long positions on GBP/USD amounts to 29%, but nonetheless the strongly negative attitude towards the Sterling is still preserved.
© Dukascopy Bank SA

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