GBP/USD stops at 55-day SMA

Even though the support at 1.63 demonstrated its resilience last week, the Cable failed to continue the fragile recovery from it after hitting the 55-day SMA. There is still a slight chance that the Sterling will manage to get closer to the 2011 highs at 1.65, but it is more likely that the currency will depreciate and resume corroding the 100-day SMA and the monthly S1.

SWFX market participants became significantly more pessimistic with respect to the Pound's prospects, being that the percentage of bears has grown from 53% up to 60% since the previous report. Meanwhile, the amounts of buy and sell orders are comparable—46% and 54% respectively.