GBP/USD backed up by monthly R1

Even though the monthly R1 did provide sufficient support to negate the sell-off, it was not enough to initiate another attack on 1.6829, formed by the rising resistance line and the monthly R2 level. Nevertheless, the daily and weekly technical indicators suggest there is still some bullish potential left in the Sterling. Meanwhile, a breach of 1.6632 is expected to result in a dip down to 1.65.

The traders' sentiment towards the Great Britain Pound stays moderately bearish, being that among the open positions 60% are short and 40% are long. As for the pending orders, there is virtually no difference between the numbers of those to purchase and sell the Sterling against the buck.