GBP/USD tests a key level at 1.6084/1.6104

The British Pound carries on outperforming its transatlantic counterpart, but the currency pair is about to hit a major downtrend resistance at 1.6084/1.6104, where bears are expected to take over and drag the price of the Sterling down. In that case GBP/USD is likely to target an uptrend support at 1.5533/15 in the long term, the view that is reinforced by values of weekly and monthly technical indicators.

SWFX traders' sentiment is largely unchanged with respect to the cable since yesterday. Distinct majority of traders (72%) stay short on the currency pair and merely 28% of them remain in the opposition. At the same time the ratio between buy and sell orders is 44% to 56%, respectively.