© Dukascopy Bank
"It's a weak dollar trend and better risk appetite which is helping cable"
- FXPro (Reuters)
Industry outlook
Near-term rallies are unlikely to extend above 1.6000 until the end of the week. GBP/USD is anticipated to step lower, down to 1.5899 (200 day ma) first, then 1.5802. Additional support is situated at 1.5650/43.
Traders' sentiment
The overwhelming majority of traders (76%) continue keeping short trades on the Cable. At the same time only 24% of them are expecting the British Pound to appreciate relative to the American Dollar.
Long position opened
In order to yield on highly volatile U.K. pound, investors should pay close attention to the identified resistance levels for the pair at 1.5962, 1.6004 and 1.6086.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5839. The breakout of this line will pave the way for the price to test S2 at 1.5757 and S3 at 1.5715.
© Dukascopy Bank