© Dukascopy Bank
"There is a risk of a negative [UK] GDP number and this could raise the risk of substantial QE down the track"
- CIBC (based on Reuters)
Industry outlook
The Cable is now trying to break through a formidable resistance located at 1.5635. This attempt is expected to fail and result in GBP/USD sliding down to 1.5272. In case bearish impetus strengthens, supports at 1.5156 and 1.4260/29 may be reached.
Traders' sentiment
Traders' sentiment is bearish, as the overwhelming majority (74%) of traders stay short on GBP/USD. Merely 26% of market participants expect the British Pound to appreciate.
Long position opened
The initial resistance level for intraday trading is 1.5655. Bulls might establish additional targets at 1.5687 and 1.5748 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 1.5562, 1.5501 and 1.5469.
© Dukascopy Bank