GBP/USD rebounds from 1.63

The support near 1.63, composed of the 2012 highs, 100-day SMA and the monthly S1, managed to withstand selling pressure that persisted throughout the previous week. GBP/USD retreated back to the 55-day SMA and may even rise up to the 2011 highs at 1.65, if the bullish tendency is preserved. Nevertheless, the log-term perspectives for the Sterling are considered to be bearish.

Although the rate has jumped nearly 100 pips on Friday, the gap between the long and short positions remains insignificant—47% of traders expect the Sterling to appreciate and 53% expect the currency to lose value. Concerning the orders, 59% of them are to sell the Pound.