© Dukascopy Bank
"If the BoE had been feeling really grim they would have done 75 billion. It's inherent in the more moderate approach that they were more optimistic about the outlook"
- BNY (based on Reuters)Industry outlook
A tough resistance zone at 1.5930 which is formed by 200 day ma did not allow further gains for the Cable, sending it down to 1.5730. Subsequent supports are located at 1.5660 and 1.5595 (55 day ma).
Traders' sentiment
Traders' sentiment on GBP/USD remains largely unchanged, as the overwhelming majority of market participants (76%) stay short on the pair. Accordingly, only 24% of traders expect the Sterling to appreciate relative to the American Dollar.
Long position opened
The price might rebound from the first resistance level at 1.5830, so major dealers are planning to close some of their long positions near this level. Subsequent goals for bulls are 1.5899 and 1.5949.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5711. The breakout of this line will pave the way for the price to test S2 at 1.5661 and S3 at 1.5592.
© Dukascopy Bank