GBP/USD sidelined below 1.6415/1.6355

Although due to a breach of the accelerated up-trend GBP/USD was expected to retreat back to 1.6267/04, the currency pair stays buoyant just beneath a tough resistance at 1.6415/1.6355. In case the price eventually surpasses the Jan high, it should pursue 2011 high at 1.6745/35 as the next target, but will have to pass through the supply zone at 1.6564/03, mainly created by the monthly R1.

The distribution between the long and short positions was not subject to any changes. An overwhelming majority of traders maintain a bearish view on the value of the Sterling relative to the U.S. Dollar—74% of them are currently holding short positions on the currency pair.