© Dukascopy Bank
"More data is coming out showing the UK economy is not necessarily going into recession and that is having a positive impact on sterling"
- Caxton FX (based on Reuters)
Industry outlook
GBP/USD has rebounded from 1.5890 as part of its bearish correction. The immediate support is located at 1.5730, followed by 1.5640. As long as these levels are not violated, the bias should remain bullish.
Traders' sentiment
GBP/USD currency pair has become oversold to a larger extent than last Friday. At the moment only 28% of traders stay long on the Cable, whereas 72% of them expect the Sterling's price to go down.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 1.5869 and 1.5919. The highest level is at 1.5979.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5759. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5699 and at S3 of 1.5649.
© Dukascopy Bank