GBP/USD stays bearish

Even though some of the technicals on the weekly chart remain bullish, the Sterling has already breached the up-trend support line and is now about to challenge 1.6319/1.6269. The latter demand zone mainly consists of the monthly S1 and the 2012 highs that could alleviate some of the selling pressure. Still, the outlook for GBP/USD is bearish, it is expected to descend to 1.60 in the first quarter.

The market remains completely undecided regarding the Pound. Presently 53% of positions are long and 47% are short, meaning the overall sentiment is neutral. A similar picture is observed with the pending orders 50 and 100 pips from the current trading price.