© Dukascopy
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The bullish impetus weakens with each moment, but still it is anticipated to last until a resistance zone located at 1.5762/86 is reached. Subsequent resistances are at 1.5912/45 and 1.6020. In the long-term the pair is deemed as bearish, aiming for 1.50.
Traders’ sentiment
Slowly and steadily the share of long trades in GBP/USD market is increasing relatively to the part of shorts. 57.22% of traders preferred acquiring the British pound, while the rest, being 42.78%, believe the greenback will appreciate.
Long position opened
Largest brokers set a new long position target as a break of 1.5637 will become an encouraging bullish sign en route to 1.5694. If the uptrend remains, the third target for intraday trading will be 1.5784.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5547. If the price continues the downtrend, the dealers might wait for the sterling to depreciate down to 1.5516 or 1.5427.
“It is vital that the UK government takes the opportunity to set out a coherent strategy and package of measures that will deliver stronger growth and job creation”
- Steve Radley, Director of Policy at EEF (based on WSJ)