GBP/USD closes above 1.6237

Given that a key falling resistance line has been broken (it has been keeping the pair in the down-trend for more than four years), there is a good opportunity for GBP/USD to extend the gains. However, there is still a notable hurdle represented by the Jan high at 1.6390, which may prevent emergence of a rally. Accordingly, only when this resistance is breached, the outlook will be changed to bullish.

Just as the Swiss Franc, the British Pound is one of the least frequently purchased currencies in the SWFX marketplace—only 27% of positions in its crosses are long the Sterling. Particularly in GBP/USD the bulls are even less common—they take up 26% of the market.