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"Given the UK's strong ties to an increasingly slowing euro zone, we like to sell sterling/U.S. dollar near technical resistance at $1.6170"
- Morgan Stanley (based on Reuters)
Industry outlook
GBP/USD is viewed as incapable of overcoming a tough resistance located at 1.6167, challenge of which should result in a dip to 1.5984. Nonetheless, the unlikely possibility of the Cable rallying up to 1.6199 may not be ruled out yet.
Traders' sentiment
The absolute majority of market participants (74%) keep on holding short trades on GBP/USD, leaving merely 26% for those who stay long on the pair.
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 1.6167, whereas R2 and R3 are situated at 1.6192 and 1.6221, accordingly.
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 1.6113, 1.6084 and 1.6059.
© Dukascopy Bank