GBP/USD's bulls keep advancing

The market is driving the Sterling higher and higher. The supply at the September low at 1.6050 failed to stop the currency and allowed the pair to reach the down-trend at 1.62. Accordingly, unless this resistance is violated, the downside risks for the near term will still be topical. But a close above it will most likely imply continuation of the recovery, potentially up to 1.64, namely the 38.2% Fibo and 55-day SMA.

Unlike EUR/USD, this market is more responsive. With a rally in GBP/USD many of the participants seem to have closed their long positions, since their amount declined from 60 to 53% compared to the previous report.