© Dukascopy Bank
"Markets were wrong-footed after expectations of QE had been scaled back"
- FXPro (based on Reuters)
Industry outlook
Despite the Cable halting near a support at 1.5645, the bearish bias persists. GBP/USD is first expected to dip to 1.5615 (55 day ma), afterwards it should target 1.5580. Resistances located at 1.5730 and at 1.5815 cap the price from above.
Traders' sentiment
The part of long positions on GBP/USD remains large, constituting 65% of the market. At the same time long trades form 35% of it, being in a distinct minority.
Long position opened
The break of the short-term resistance line 1.5771 would pave the way for the pair to rise up to 1.5876. The clearance of the second daily resistance level would establish a new target for traders at 1.5937.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5605. If the price continues the downtrend, the dealers might wait for the price to depreciate down to 1.5544 or 1.5439.
© Dukascopy Bank