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- JP Morgan Private Bank (based on Reuters)
Industry outlook
GBP/USD has managed to preserve its near-term bullish momentum and is presently well-placed to aim for 1.6167. The resistance is expected to contain the pair, which in turn will result in a dip down to 1.5984 or even 1.5865.
Traders' sentiment
The Cable remains oversold to a large extent, as most of market participants (71%) have preferred to short sell the pair instead of taking a long position.
Long position opened
The initial resistance level for intraday trading is 1.6170. Bulls might establish additional targets at 1.6214 and 1.6280 if the British Pound appreciates more.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.6060. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5994 or 1.5950.
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