GBP/USD backed up by 1.6518/00

Although GBP/USD has recently taken a hit, it managed to find support circa 1.65 and commence a recovery. At the moment the Cable is approaching the resistance at 1.6679/41 that previously forced the price to plunge more than 150 pips before it could stabilise. If this area is broken, the up-trend line at 1.6809/1.6791 could be targeted next.

The recently opened short positions are still not affected by bullishness of the currency pair—the bears are in a distinct majority with 70% of the market. As for the orders, there are noticeably more traders planning to sell the Sterling against the Dollar—from 50% up to 63%.