© Dukascopy Bank
"The news [on UK economy] this week has been as good as anyone could have hoped realistically"
- Investec (based on Reuters)
Industry outlook
The Cable is likely to continue falling down, given its recent failure at a key resistance located at 1.6067. The initial target for the pair is at 1.5759, while subsequent goal may lie at 1.5599 or even at 1.5412, provided that bearish momentum strengthens.
Traders' sentiment
GBP/USD is oversold, as the overwhelming majority of traders (71%) have preferred to enter the market with a sell trade recently.
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 1.5926, whereas R2 and R3 are situated at 1.5964 and 1.6011, accordingly.
Short position opened
A part of the brokers will close their short positions near initial support level at 1.5841. In case of downtrend continuation, the pair might rebound from the S2 at 1.5794 or S3 at 1.5756.
© Dukascopy Bank