GBP/USD aims at 1.56

Although the pair started the week quite a distance from any major support or resistance areas short term technicals indicate it is aiming at the 1.56 area. Medium and long term technicals, however, indicate that weekly PP will fail the pair and we should pay attention to the 20 and 200-day SMAs and uptrend support. Consolidation above the weekly PP would put weekly R1 and 1.573/8 on the map.

Despite the recent rally the gap between the long at short traders increased further. At the moment 75% of traders expect depreciation of the pair. Pending orders, being 58% to go short, give substantial support for the market bears as well.