GBP/USD approaches 2014 low

Although GBP/USD initially found support at 1.6162 (weekly S1), the currency pair stopped 50 pips short of reaching the supply area near 1.63 and turned around. And so, the sell-off continues—the next target is this year's lowest point at 1.6050. If the price closes below this level, the Sterling will most likely continue to descend. First, towards the monthly S1 at 1.5960; then, to the 2013 Q4 low at 1.5850.

The bulls do have an advantage right now over the bears, but it is fragile—merely 12 percentage points. Concerning the pending orders, there is currently no significant difference between the amounts of buy (51%) and sell (49%) ones.