GBP/USD backs away from 1.6679/41

GBP/USD appeared to have a strong bullish momentum, but it slipped after a test of the monthly R1 at 1.6679, negating as a result a substantial part of its gains since Jan 17. The sell-off was stopped only at 1.6518/00, the support that should stay intact in order for the medium-term bias to remain positive for the Sterling. Otherwise the 2012 highs are going to be challenged once again.

An overwhelming majority of the SWFX market participants see the latest appreciation of the Pound as overstretched—as many as 71% of them are presently holding short positions. As for the pending orders, there is currently no significant difference between the amounts of buy and sell ones.