© Dukascopy Bank
"With the UK data a bit softer and mortgage approvals disappointing we think sterling has topped out at $1.60."
- Caxton FX (based on Reuters)
Industry outlook
GBP/USD is expected to fail at attempting to breach the 1.6014 level (200 week ma). The market has not traded above this level since 2008. If bearish momentum persists, the pair is likely to slide back to 1.5570 (22nd March 2012 low).
Traders' sentiment
The shares of short and long positions on GBP/USD turned sharply bearish as investors (73.57%/26.43% act.) anticipate the pair to move downwards.
Long position opened
The immediate resistance level for GBP/USD is expected to be faced by market players at 1.5989 today. R2 at 1.6022 and R3 at 1.6087 are the next resistance levels that are prone to be tested if the bullish stance holds.
Short position opened
The largest market participants might close their positions around 1.5891. If it happens, a bearish reversal might occur, paving the way to the next support levels at 1.5826 and S3 at 1.5793 might become the next targets.
© Dukascopy Bank