© Dukascopy Bank
"Data from last week suggests the BoE may even extend QE come May. It's no basis for a big sterling rally"
- Lloyds (based on Reuters)
Industry outlook
Despite a rally of the Cable up to 1.6067, bullish impetus seems to be unable to push the price any higher. For now the pair should stay above 1.5930, breakout of which would allow for a dip to 1.5741 occur.
Traders' sentiment
According to SWFX sentiment index, GBP/USD is currently oversold (73%), thus increasing the possibility of the pair rallying, given that those who stay short on the Cable start closing their positions.
Long position opened
The initial resistance level for intraday trading is 1.6063. Bulls might establish additional targets at 1.6105 and 1.6147 if the Sterling appreciates more.
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 1.5979, 1.5937 and 1.5895.
© Dukascopy Bank