© Dukascopy Bank
"Sterling looks like an okay bet for now as most of the bad news for the UK has been priced in, but in the next few months we think it is likely to head lower"
- UBS (based on Reuters)
Industry outlook
Inability of the currency pair to penetrate a tough resistance at 1.6067 resulted in a dip to 1.5881. Consequently, GBP/USD will now be aiming for 1.5849 (200 day sma) and then for 1.5796 (55 day sma).
Traders' sentiment
The overwhelming majority of market participants (72%) continue staying short on the Cable, expecting the British Pound to depreciate relative to the US Dollar.
Long position opened
FX market participants have put their take profit orders at the key resistance points of intraday trading. Some of the investors might close their deals at 1.6009 and 1.6105. The highest level is at 1.6164.
Short position opened
Major dealers are planning to partially close their short positions if the pair touches upon the first support level at 1.5854. However, if the bearish impetus proves to be strong enough, some of the positions could be squared off at S2 of 1.5795 and at S3 of 1.5699.
© Dukascopy Bank