© Dukascopy Bank
"Sterling remains firm against the euro and solid against the dollar, but continued euro weakness should logically undermine sterling/dollar from here"
- Lloyds (based on Reuters)
Industry outlook
Given that recent rally was tepid, the focus should remain on a support at 1.5830. In case this level is penetrated, a dip may extend down to 1.5599 or even 1.5412. From above the pair is capped by resistances at 1.5905, 1.5984/92 and 1.6037.
Traders' sentiment
Bears have extended their advantage over bulls. At the moment long positions constitute 74% of the market, while short positions form only 26% of it.
Long position opened
The initial resistance level for the pair is 1.5933. If the price continues increasing, the investors will hold longs until the pair climbs up to 1.5968 or 1.6025.
Short position opened
The immediate support line is at 1.5841. Should the price step even lower, it will encounter subsequent levels at 1.5784 and 1.5749, where recovery might start.
© Dukascopy Bank