© Dukascopy Bank
"The current woes of manufacturers raise the likelihood that the U.K. economy will stagnate in the fourth quarter"
- Markit (based on WSJ)
пЃ® Industry outlook
GBP/USD is gaining bullish momentum, implying the possibility of surging up to 1.5743 in the short-term. Should this level be penetrated, subsequent resistances at 1.5883/88 and 1.5930 may be reached. Initial support is at 1.5660, followed by 1.5500.
пЃ® Traders' sentiment
British Pound - American Dollar is oversold at the moment, since 36.4% of all the positions opened are long and the rest of the market is being dominated by short positions which form 63.6% of GBP/USD market.
пЃ® Long position opened
The initial resistance level for intraday trading is 1.5757. Bulls might establish additional targets at 1.5804 and 1.5886 if the euro appreciates even more.
пЃ® Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5628. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5546 or 1.5499.
© Dukascopy Bank