GBP/USD eyes 1.6300/1.6273

GBP/USD has finally come under the demand area circa 1.65 and is now poised to move even lower, despite the weekly ‘buy' signals. Right now the currency pair is struggling to breach the 55-day SMA, but ultimately it should violate a tough support zone near 1.63 (2012 highs, 100-day SMA, monthly S1) and set course on the 200-day SMA at 1.5914, which is strengthened by the monthly S3.

There are considerably less short positions in the market than at the beginning of the last week—62% instead of 71%, but the sentiment stays strongly bearish towards the British Pound. Meanwhile, being that the buy orders already exceed the sell ones, the price may be closing in on the support.