GBP/USD backed up by 2009 highs

As long as the support at 1.7054/19 remains intact, there is a good chance the bullish momentum of the Cable is going to be restored and the rate will eventually rise up to 1.74. Conversely, if this demand area gives up, the monthly PP and 55-day SMA at 1.6973/50 will become the next target. In this case the up-trend and 100-day SMA at 1.6886/21 could also be tested, even though there are more ‘buy' signals than the ‘sell' ones on the monthly chart.

The gap between the bullish and bearish traders has narrowed since the last report—from 44 percentage points to 38. In the meantime, there seems to be no significant difference between the amounts of buy (45%) and sell (55%) orders.