© Dukascopy Bank
"UK industrial and manufacturing production will be of interest. The market is expecting UK IP to rebound after a disappointing January number, so a downside surprise will weigh on GBP"
- Lloyds (based on Reuters)
Industry outlook
GBP/USD has managed to rebound from an uptrend at 1.5803 and is now aiming for 1.5888 and a confluence of resistances at 1.5926/49, which is unlikely to be penetrated at the very first attempt, given mixed signals of most of the indicators.
Traders' sentiment
The Cable is currently oversold, since the absolute majority of market participants (70%) have decided to short the pair, expecting it to continue falling.
Long position opened
Largest brokers set a new long position target as a break of 1.5889 is an encouraging bullish sign en route to 1.5951. If the uptrend remains, the third target for intraday trading will be 1.5993.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5785. The breakout of this line will pave the way for the price to test S2 at 1.5743 and S3 at 1.5681.
© Dukascopy Bank