GBP/USD recoils from 1.6237

A re-test of the down-trend resistance line that has been in force since August of 2009 entailed a sell-off. The Sterling has already slipped beneath the weekly PP and is about to hit a cluster of supports at 1.6114/1.6066. Once this obstacle is removed, GBP/USD should gravitate towards the area at 1.5933/1.5871, which is the current location of the up-trend line, monthly S1 and 100-day SMA.

SWFX market participants seem to have become even more convinced that the British Pound will lose value relative to the U.S. Dollar since the previous report, as the portion of short on GBP/USD positions has grown up to 74%. Concerning the orders, 58% of them are to acquire the Sterling and 42% are to sell it.