© Dukascopy Bank SA
- Bank of England (based on Guardian)
Industry outlook
A bearish correction intensified and it made GBP/USD reach the initial support at 1.6167—the October 2011 high. If bearish bias holds further, the pair is likely to target 1.6110/1.6050 zone. 1.6050 is the 50% retracement of the move upwards from the middle of April, thus the pair could stabilize here and start a bullish rally from this level.
Traders' sentiment
An overwhelming majority of traders (70.57%) are planning to enter the market with a sell trade, while 29.43% of them anticipate the Cable to grow versus 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 1.6208, 1.6240 and/or 1.6264.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.6152. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.6128 and at S3 of 1.6096.
© Dukascopy Bank SA