GBP/USD cautiously approaches 1.6237/1.6191

Despite the proximity of the exchange rate to the major falling resistance line, the British Pound is gaining value against the greenback. Still, we expect 1.6237/1.6191 to withstand the bullish pressure and repeat the events of early and late October, when the rallies were halted by the same supply zone. The case of this scenario is also hardened by the daily technical indicators, more of which have become bearish since the last update.

The distribution between the bullish (30%) and bearish (70%)positions has become even more heavily skewed towards the latter than last week, when already merely 34% of the traders in the market were in favour of the stronger Sterling.