GBP/USD updates 2014 low

The currency pair effortlessly pierced through this year's low last Friday and found support only at the monthly S1. Now GBP/USD is in a position for a recovery, even though the technicals are currently mixed. The immediate resistance is at 1.6050 (previous 2014 low and weekly PP), followed by the three-month down-trend at 1.62. But if the bulls fail to exploit the opportunity to regain some ground, the sell-off will expose 2013 Q4 low at 1.5850.

The SWFX market is moderately bullish with respect to the British Pound—58% of traders are presently holding long positions. As for the orders placed 100 pips from the spot, 48% are to buy and 52% are to sell the currency against the Buck.