© Dukascopy
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"The risk that the overall [UK] economy enters recession in the fourth quarter appears to be high and rising"
- Capital Economics (based on WSJ)
Industry outlook
The market is lazily crawling up, nevertheless the current impetus seems to be weakening and is unable to break through resistance at 1.6142, being 200 day ma. Therefore GBP/USD is much more likely to decline to 1.5862, which in turn will be soon violated.
Traders' sentiment
GBP/USD market has been significantly swayed towards oversold zone, as the portion of longs has diminished down to 27.31%, while shorts surged up to 72.69%. The American dollar stays as the most popular currency among its major counterparts.
Long position opened
The initial resistance level for intraday trading is 1.6139. Bulls might establish additional targets at 1.6181 and 1.6275 if the euro appreciates even more.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.6045. If the price continues the downtrend, the dealers might wait for the pound to depreciate down to 1.5993 or 1.5899.