GBP/USD loses upward momentum

Yet another unsuccessful try to rise beyond the monthly R1, and GBP/USD is descending from 1.6679/28 towards 1.6518/1.6478, the lower boundary of the 11-month rising wedge. Given the nature of this pattern, the latter support is likely to give in, which would lead to a massive sell-off, potentially until the 200-day SMA at 1.59 is reached, even though the technicals are mostly bullish.

The market has become slightly less convinced that the British Pound is going to lose value, but the substantial majority, namely 65% of all traders, remain bearish with respect to the Sterling. As for the orders, the number of the sell ones is increasing—50 pips from the spot 61% of them are to short sell GBP.