GBP/USD approaches 1.6013/1.5996

A shallow rally that has appeared after a test of the support at 1.5921 is about to encounter the resistance at 1.6013/1.5996, which in turn is followed by the monthly pivot point at 1.6066. This bullish correction should not be able to breach both of these levels—the outlook on the currency pair is bearish, since the key resistance at 1.6237 prevents emergence of a robust and persisting recovery.

Since the previous report the attitude of the SWFX market participants towards GBP/USD has changed considerably—the share of bears has surged by seven percentage points to 60%. In the meantime, the distribution between the buy and sell orders is 42% to 58% respectively.