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"The risks facing the UK are coming from the euro zone, so good news for the euro zone is good news for the UK"
- Barclays Capital (based on Reuters)
Industry outlook
Despite a rebound from 1.5839 the rally is unlikely to last for long, being that above lies a tough level at 1.6000. Therefore the focus should not shift from 1.5839 (55 and 200 day ma). Additional support is provided by 1.5805 and 1.5780/73.
Traders' sentiment
The Cable remains oversold to a large extent, as bears form 71% of the market, while bulls are in distinct minority, composing only 29% of the market.
Long position opened
The break of the short-term resistance line 1.5974 would pave the way for the pair to rise up to 1.6026. The clearance of the second daily resistance level would establish a new target for traders at 1.6082.
Short position opened
Key support for GBP/USD intraday trading is situated at 1.5866. In case S1 is penetrated, traders with short positions are likely put their T/P orders at 1.5810 and 1.5738.
© Dukascopy Bank