GBP/USD looks towards 1.74

Taking into account the technical studies, the weekly R3 should not prevent further appreciation of the Sterling. Conversely, the currency is reckoned to have the potential to test the resistance at 1.74 this quarter, consisting of the monthly R2 and 16-month up-trend resistance (upper boundary of the bullish channel). But if the upward momentum does not prove to be strong, there are strong supports near 1.70 and 1.68.

Despite the fluctuations in the price, the sentiment with respect to the Pound remains distinctly bearish—as many as 75% of the traders are currently holding short positions. As for the orders, 43% are to buy and 57% are to sell the currency against the buck.