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- Danske Markets (Reuters)
Industry outlook
Rallies are unlikely to extend above 1.6000 and 1.6103 for now. The pair is thus anticipated to slide down to 1.5897 (200 day ma). In case the latter level does not withstand bearish pressure, we might observe dips to 1.5802 or even 1.5737.
Traders' sentiment
Long position holders remain in a distinct minority. Only 23% of traders have acquired the British Pound against the American Dollar, whereas 77% are staying short on the Cable.
Long position opened
Bullish investors should pay attention to the key resistance levels for intraday trading. R1 is situated at 1.5989, followed by R2 and R3 at 1.6021 and 1.6068, respectively.
Short position opened
Major market participants with short positions will hold their deals until the price slides down to the initial support level at 1.5910. If the price continues the downtrend, the dealers might wait for the Sterling to depreciate down to 1.5863 or 1.5831.
© Dukascopy Bank