GBP/USD continues to consolidate

Starting from the beginning of the quarter GBP/USD has been staying inactive, even though there are more ‘buy' signals than the ‘sell' ones. On the other hand, none of the important supports, such as the 2009 high at 1.7042, have been broken, meaning the risks are still skewed to the upside. The nearest significant obstacle is the monthly R1 at 1.7248, followed by the monthly R2 together with the rising resistance line at 1.74.

There are relatively less bears than last Friday, but they are still in an overwhelming majority—70% of the market. As for the orders, there was a significant increase in the percentage of buy ones—from 49% up to 60% over the weekend.