© Dukascopy Bank
"Before investors jump into sterling/dollar longs that could take it towards $1.60 they will wait for the PSI (Greek debt swap deal) to see whether collective action clauses are employed"
- ING (Reuters)
Industry outlook
While rallies are contained by resistances which lie at 1.5881 (200 day ma), 1.5927 and 1.6000, the Cable is expected to decline in weeks to come. The initial support should be encountered at 1.5670, followed by 1.5650/43.
Traders' sentiment
Traders' sentiment regarding GBP/USD has not been altered to a large extent, leaving it unchanged. The ratio between buy orders and sell orders is currently 40% to 60%, accordingly.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 1.5867 and 1.5905. The weakest level is at 1.5976.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5758. The breakout of this line will pave the way for the price to test S2 at 1.5687 and S3 at 1.5649.
© Dukascopy Bank