© Dukascopy Bank
"We don't like the outlook for sterling due to weak government finances, low rates and weak growth. We are buyers of dollars above $1.60"
- Midas balanced growth fund (based on Reuters)
Industry outlook
The Cable is attempting to close above 1.6062/67, which guards 1.609 and 1.6129. Nonetheless, the resistance is unlikely to give in for now and should be able to contain the pair. The interim support is at 1.5856/44 (55 and 200 day ma).
Traders' sentiment
GBP/USD is oversold to a large extent at the moment, since the overwhelming majority (73%) of trades opened are short, while longs form 27% of the market.
Long position opened
The initial resistance level for the pair is 1.6083. If the price continues increasing, the investors will hold longs until the pair climbs up to 1.6114 or 1.6152.
Short position opened
Bearish market players will pay attention to a near-term support at 1.6014. The downtrend continuation will establish following targets for traders: S2 at 1.5976 and S3 at 1.5945.
© Dukascopy Bank