GBP/USD trades sideways

Regardless of the bullish outlook implied by the technical studies, the Cable remains flat, trading some 100 pips north from 2009 high. Nevertheless, the risks are heavily skewed to the upside—the closest resistance is at 1.7248/07 (monthly R1), but the Sterling has all the chances to reach 1.74 (monthly R2 and 16-month up-trend). In the meantime, high concentration of demand is supposed to be at 1.7069/44.

The bears have further enhanced their advantage over the bulls. The former now take up 74% of the market (71% yesterday). As for the orders placed on GBP/USD, there is presently no significant difference between the buy and sell ones.