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"GBP would come under distinct pressure if the BoE in fact did institute 75 billion pounds or more in new quantitative easing"
- Citi (based on Reuters)
Industry outlook
The Cable has recently stalled near resistance at 1.5887, however, bullish bias persists. As soon as this line is penetrated, GBP/USD should surge up to 1.5945 (200 day ma) with the possibility of climbing up to 1.6168.
Traders' sentiment
Traders' sentiment on GBP/USD has been slightly altered, increasing the extent to which the pair is oversold. 26% of positions are currently long and 74% of them are short.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 1.5868, whereas R2 and R3 are situated at 1.5910 and 1.5980, accordingly.
Short position opened
A part of the brokers will close their short positions near initial support level at 1.5756. In case of downtrend continuation, the pair might rebound from the S2 at 1.5686 or S3 at 1.5644.
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