© Dukascopy Bank
"Technically the UK is in recession but the pound has not sold off massively, which suggests maybe it has found a new range ... Sterling is benefiting from people diversifying out of euros and there aren't many choices out there."
- Investec (based on Reuters)
Industry outlook
GBP/USD shows strong performance for the second consecutive week and it shows no signs of stopping for now. The market is aiming at the next target placed in the 1.6261/1.6318 zone, however the RSI standing in the "over-buy" section shows the pair might face a strong resistance ahead at those levels.
Traders' sentiment
The overwhelming majority of market participants (70.91%) remain short on the Cable, expecting the British Pound to lose in value against the US Dollar.
Long position opened
Leading market participants, who have entered GBP/USD market with a buy trade, are expecting to close their positions at the key resistances at 1.6310, 1.6358 and 1.6437 if the bullish momentum holds for the rest of the day.
Short position opened
A part of the brokers will close their short positions near initial support level at 1.6183. In case of downtrend continuation, the pair might rebound from the S2 at 1.6104 or S3 at 1.6056.
© Dukascopy Bank