GBP/USD to re-test 1.6390

After a 70-pip decline the Cable is attempting to gather strength and challenge the January high once again. However, it will have to close above the weekly pivot point level at 1.6351/43 first. If the currency pair succeeds, it is likely to remain bullish with the medium-term target at 1.6745/29, the current location of the monthly R2 and, more importantly, the 2011 high.

While there remains an enormous difference (48%) between the amounts of bulls and bears in the market in favour of the latter, just as throughout the whole last week, the gap between the buy and sell orders placed on GBP/USD is insignificant at the moment, merely eight percentage points.