© Dukascopy Bank
"We have a forecast of a slow grind higher for sterling and the sterling crosses"
- Societe Generale (based on Reuters)
Industry outlook
Resistance at 1.5927 is deemed to be impenetrable for the Cable, as it is being reinforced by an additional level situated at 1.5992. The interim support is likely to be found at 1.5760/545, while subsequent levels are at 1.5643 and 1.5599.
Traders' sentiment
GBP/USD currency couple is oversold at the moment. Bearish trades dominate the pair with 73%, whereas bullish ones are in a distinct minority, forming only 27% of the total amount of positions.
Long position opened
Initial resistance area for the pair is situated at 1.5915. Subsequent goals for the bullish market payers may be found at 1.5963 and 1.6018.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5821. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5757 and at S3 of 1.5708.
© Dukascopy Bank