GBP/USD stays between monthly R1 and weekly PP

GBP/USD seems to have lost its upward momentum following a test of the monthly R1. Nevertheless, as long as the Cable is underpinned by the January high at 1.6390/41 and the support zone at 1.6242/1.6199, formed by the monthly PP and the down-trend lines, the Sterling should continue to increase in value. The medium-term target in this case will be 1.6745/14.

The SWFX market participants stay strongly convinced that the Sterling is going to underperform relative tot the U.S. Dollar—72% of all open on GBP/USD positions are short. Among the pending orders on the pair, the portion of the buy ones near the spot price plunged 16 percentage points to 51%.