GBP/USD probes 1.6237

Although we consider 1.6237 to be a major resistance level, being formed by the monthly R1, long-term down-trend and the local peaks, the Cable continues to approach the January high. Still, GBP/USD is expected to falter ahead of 1.6390 eventually. The nearest important support is at 1.6114/1.6066, where the monthly pivot point merges with the 55-day SMA.

Along with the Swiss Franc, the British Pound is one of the least preferred currencies in the SWFX marketplace. Only 29% of positions in Sterling crosses imply its appreciation. Exactly the same situation is observed in GBP/USD, where 28% of positions are long and 72% are short.