GBP/USD rejected by 2009 high

GBP/USD had a good chance of advancing further north, but the bullish momentum was stopped by 1.7044, the 2009 high, and by a more dovish than expected stance of the BOE. Now the Sterling is set to decline to 1.68, where it is supposed to be underpinned by the up-trend line, monthly PP and 100-day SMA. Another implication of this U-turn is emergence of a rising wedge that usually portends a reversal—in this case an eventual violation of 1.68.

Though the yesterday's events increased the volatility in GBP/USD, the SWFX traders seem to be unfazed by Carney's comments, being that similarly to the figures 24 hours ago, 27% of open positions are long and 73% of them are short.