GBP/USD pushes through 1.5240/33

The Cable acknowledged 1.5240/33 as a support level yesterday, but today demonstrates willingness to go lower. At first it will meet 1.5190, a monthly S1 level and a Bollinger band, but settlement beneath 1.5240/33 means that in the longer term the currency pair is likely to be aiming for 1.4844/1.4829, Mar 12 low, although monthly indicators are not giving strong ‘sell' signals at the moment.

Bulls are still in majority on GBP/USD, being that 59% of market participants are holding long positions and do not wish to change their exposure until there are more distinct signals. Conversely, the distribution of orders has now become skewed towards the sell ones, which currently constitute 55% of the total amount.