© Dukascopy Bank
"GBPUSD rebounds remain selling opportunities. Should the BoE initiate another round of QE, this may open the door to the downside for GBP"
- Morgan Stanley (based on Reuters)
Violation of 1.5887 allows for further gains. The near-term target is located at 1.5940 (200 day ma), whereas within a longer time period we may witness a rally up to 1.6170. Supports are at 1.5790 and 1.5730, limiting possible losses.
Traders' sentiment
Bears continue to dominate on GBP/USD. Additionally, they have enlarged their advantage over bulls, increasing their share up to 81%, while bulls constitute merely 19% of the market.
Long position opened
The break of the short-term resistance line 1.5938 would pave the way for the pair to rise up to 1.5981. The clearance of the second daily resistance level would establish a new target for traders at 1.6056.
Short position opened
Major FX traders expect the price to test the initial support level at 1.5820. The breakout of this line will pave the way for the price to test S2 at 1.5745 and S3 at 1.5702.
© Dukascopy Bank