GBP/USD recoils from 1.5965/13

Just like EUR/USD, the Cable has run into a cluster of supports that are not letting the price to go any lower. Therefore GBP/USD considered to be bullish in the short run. However, the major down-trend resistance line at 1.6235/1.6198 that may be drawn from August of 2009 is highly unlikely give in, meaning that the longer-term outlook for the British Pound remains negative.

The stance of traders towards the Sterling has remained perfectly unchanged since the last report (39% of open positions are long and 61% are short), since the price has been fairly stable lately. As for the orders placed on the currency pair, 45% of them are to acquire and 55% are to sell the Pound.