GBP/USD backed up by 1.66

While being underpinned by a strong support area around 1.66 (monthly PP, up-trend 55-day SMA), the Cable seems to be inclined to rise. Presently the currency pair is testing the resistance at 1.6675/52 and in case the Sterling extends the gains, the weekly PP at 1.6719 is going to come under pressure next. In the long run, however, we still expect the British Pound to underperform.

Even though the gap between the bullish and bearish market participants widened, it still remains rather small. At the moment of writing 44% of positions were long and 56% were short. As for the orders, the difference between the buy (49%) and sell (51%) ones declined.