© Dukascopy Bank
"The pound is likely to gain against the USD and other safe havens if risk appetite recovers on better euro zone news"
- Lloyds (based on Reuters)
Industry outlook
The Cable is advancing toward 1.5917 (200 day ma) at the moment. However, this resistance line is not expected to be breached. On the contrary, we are likely to observe a trade off down to 1.5645 following an encounter.
Traders' sentiment
The overwhelming majority of traders (78%) are holding short positions on GBP/USD, expecting the British Pound to depreciate relative to the American Dollar.
Long position opened
The initial resistance level for intraday trading is 1.5858. Bulls might establish additional targets at 1.5895 and 1.5930 if the Sterling appreciates even more.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5786. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5751 and at S3 of 1.5714.
© Dukascopy Bank