© Dukascopy Bank
"The expectation from the OECD that the UK is about to fall into another recession makes quantitative easing more likely in May in our view. Thus, the move higher in sterling could be a bit premature"
- Forex.com (based on Reuters)
Industry outlook
GBP/USD is attempting to erode 1.5995, although this break is unlikely to be sustained. Near-term dips should be contained by supports at 1.5850, 1.5842 and 1.5773, while additional resistances are at 1.6037 and 1.6103.
Traders' sentiment
The overwhelming majority of traders (75%) preferred to enter the market with a sell trade, creating the overall bearish sentiment for the Cable.
Long position opened
Leading market participants, who have entered GBP/USD market with a buy trade, are expecting to close their positions at the key resistances at 1.6049, 1.6088 and 1.6140.
Short position opened
Bearish traders will pay attention to the key support levels to close their deals. The likely targets are 1.5958, 1.5906 and 1.5867.
© Dukascopy Bank