GBP/USD approaches 1.5650

Having established a solid support at 1.55 last week, the Cable is currently moving towards 1.5650. There the currency pair will meet the down-trend line that is strengthened by the weekly R1 and 20-day SMA. If the Pound manages to close above this supply zone, it will mean the falling wedge has been broken to the upside, implying further appreciation of the Sterling. Alternatively, if 1.5650 stays intact, 1.54 will probably be reached in the next few weeks.

While the sentiment is the same as last week (58% of open positions long), there has been a noticeable change in the distribution between the buy and sell orders in favour of the former, meaning we are less and less likely to observe an accelerated move south.