GBP/USD stays inactive

GBP/USD remains unable to realise its bullish potential implied by the daily and monthly technical indicators. For now the weekly PP at 1.7113 is enough to support the pair, but there is an increasing risk of a dip down to the 2009 high and weekly S1 at 1.7042. Nevertheless, the baseline scenario is an up-move through the nearest resistances, such as the monthly R1, and to 1.74, where we can expect strong selling pressure.

While there are still no changes in the sentiment of the market towards the Cable (73% of positions are short), the distribution between the buy (48%) and sell (52%) orders has levelled off since the previous report.