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"Positive data surprises from the UK have provided some support of late but we think the domestic picture will start to run out of steam and sterling will be back under pressure"
- Morgan Stanley (Reuters)Industry outlook
Being that the Cable has breached an uptrend support, the dip is expected to extend down to 1.5650/43. Resistances are situated at 1.5886 (200 day ma) and 1.6000, they should contain intraday rallies.
Traders' sentiment
Advantage in numbers of sell orders (63%) over buy orders (37%) on GBP/USD currency pair implies the willingness of the traders to short the pair.
Long position opened
The initial resistance level for intraday trading is 1.5766. Bulls might establish additional targets at 1.5793 and 1.5827 if the Sterling appreciates more.
Short position opened
A part of the brokers will close their short positions near initial support level at 1.5705. In case of downtrend continuation, the pair might rebound from the S2 at 1.5671 or S3 at 1.5644.
© Dukascopy Bank