GBP/USD backs down

GBP/USD failed to sustain the recovery, but for now remains underpinned by the support at 1.6415/1.6355, meaning the current dip may not extend down to 1.6206/04. If the sell-off, however, persists, the down-trend support line and the monthly pivot point should be able to limit the losses and subsequently send the currency pair back to the latest peak.

SWFX traders largely ignore the fact that the British Pound has become cheaper and do not seem to be willing to exploit it—the share of long positions stays extremely low, specifically at 27%, while 73% of them consider that the bearish potential of the pair has not yet been fully realised.