GBP/USD plunges beneath monthly pivot point

At first it looked as if the Sterling is going to continue the advancement seen last week. However, despite the bullish technical signals on the weekly and monthly time-frames, the price declined, being unable to withstand the selling that was triggered after a test of the upward-sloping resistance line. The Pound is likely to remain under pressure until it reaches the support at 1.6590, which is created by the weekly PP and 55-day SMA.

The share of the SWFX market participants believing the British Pound is going to lose value against the U.S. Dollar increased, namely from 63% to 66%. At the same time the number of sell orders fell, from 61% to 57%.