GBP/USD inclined to move away from 1.6712/09

GBP/USD does not seem to be in a hurry to descend, but being that it has just recoiled from the rising resistance line, the pair may cede more ground from here. The immediate support is at 1.6591/89, and in case it does not manage to limit potential losses, we will be looking at 1.65 as the next most likely target. There the 2011 highs merge with the 100-day SMA and monthly S1 and thereby imply a formidable support zone.

The SWFX market participants are notably less bearish towards the Pound than yesterday. The portion of short positions open on GBP/USD went down from 66% to 58%, which is close to the 10-day average of 57.5%.