© Dukascopy Bank
"Challenges to global risk appetite and increased asset market volatility will work against sterling"
- Morgan Stanley (based on Reuters)
Industry outlook
Advancement of GBP/USD, which started at 55 day ma at 1.5827, is viewed as being limited by resistances located at 1.5935/65 and 1.6062. Additional support level, on the other hand, may be found at 1.5805/03.
Traders' sentiment
The Cable has become oversold to even a larger extent, as the share of short positions has grown up to 71%, while long trades constitute merely 29% of the market.
Long position opened
Investors should pay attention to the identified with the help of the standard pivot point method resistance zones, as they might be useful during intraday trading. The initial resistance level is at the level of 1.5945, whereas R2 and R3 are situated at 1.5985 and 1.6032, accordingly.
Short position opened
In case of dips, another rally may start after rebounding from the initial support level at 1.5858. However, assuming that the bearish momentum does not weaken, investors will pay attention to the lower support levels at 1.5811 and 1.5771.
© Dukascopy Bank