GBP/USD inclined to move south

GBP/USD fell below a series of supports during the last five trading days, including the monthly PP and 55-day SMA. Accordingly, given that there are no dense demand zones nearby, the Sterling is expected to carry ceding ground, even though there are slightly more bullish technical indicators than bearish ones. The closest significant level is 1.6527/22 (100-day SMA), but the key support is at 1.65 and consists of the 2011 highs and monthly S1.

Since the previous report the gap between the long and short positions has greatly narrowed, being that the percentage of bearish market participants has plunged from 68% down to 59%, meaning the sentiment is becoming much less bearish.