GBP/USD denied by 1.55

Resistance at 1.55, created by the monthly R1 and 100-day SMA,  proved to be a major level after the last two weeks of trading. A sell-off from there has already extended beyond the 200-day SMA, and most of the long-term technical indicators keep pointing south. Today we expect to see a lot of pressure on the monthly PP that in turn will be defending September's low. A breach of 1.53 will highly likely result in a re-test of the 1.51, which is the lowest level since this year's May.

Although the percentage of bulls increased, the sentiment remains neutral, as the gap is merely 6 percentage points. Meanwhile, the share of buy orders plunged from 70 to 44%.