GBP/USD reached a ceiling

Since there were no significant resistances nearby, GBP/USD managed to extend the rally from 1.5850. But now the currency pair is facing a serious obstacle represented by the weekly PP, 20-day SMA and four-month down-trend. Accordingly, the bears are now expected to regain control of the market and force the bulls to retreat some 250 pips before there can be another distinct upward correction.

Traders' sentiment currently favours the British Pound—60% of positions are long and 40% are short. As for the orders placed 100 pips from the spot—47% are to buy and 53% are to sell the Sterling against the Dollar.