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"The potential for further BoE easing, as highlighted by the more dovish-than-expected MPC minutes, will likely keep the pressure on the downside for GBP/USD"
- Morgan Stanley (based on Reuters)
Industry outlook
The Cable is now facing a strong resistance area 1.5879/1.5927. It is formed by a number of February highs and 200 day ma. Above it the pair may encounter 1.6000 and 1.6092/1.6129. Supports are located at 1.5842 and 1.5650.
Traders' sentiment
Bears have enlarged their advantage over bulls on GBP/USD. At the moment long trades form 24% of the market, while short ones compose 76% of it.
Long position opened
The initial resistance level for the pair is 1.5941. If the price continues increasing, the investors will hold longs until the pair climbs up to 1.6009 or 1.6119.
Short position opened
Largest investors might have placed their take profit orders at the key support levels. These levels for intraday trading are situated at 1.5763, 1.5653 and 1.5585.
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