GBP/USD soars to Jan 2 high

GBP/USD continues to surprise. Following a violation of the monthly pivot point, the currency pair shot through the resistance level at 1.65 and nearly reached the recent highs at 1.66, as it managed to cover 100 pips in a day. In the event of further Sterling's appreciation, which is still deemed to be unsustainable, the weekly R2 may fall the next victim to the pair's bullishness.

As a consequence of the Cable's latest rally, many of the market participants sold the British Pound, believing the currency has already topped out—right now 64% of positions are short. However, at the same time the share of sell orders, instead of increasing, fell from 61% to 49%.