© Dukascopy Bank
"Sterling looks particularly vulnerable against the euro in the very near term"
- Citi (based on Reuters)
Industry outlook
A key support level at 1.5272 in conjunction with a subsequent line at 1.5145 has repelled the Cable, sending it higher. Even though resistances at 1.5633 (55 day ma) and 1.5672 are likely to halt rallies, the price should attempt to recover.
Traders' sentiment
The portion of bullish trades on GBP/USD has significantly diminished since yesterday. Presently longs constitute 55% of all the positions, while the portion of shorts has gone up to 45%.
Long position opened
The initial resistance level for intraday trading is 1.5387. Bulls might establish additional targets at 1.5443 and 1.5481 if the Sterling appreciates even more.
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 1.5293, 1.5255 and 1.5199.
© Dukascopy Bank