GBP/USD's rallies are contained by down-trend

GBP/USD's upward impetus proved to be weak, as the currency pair failed to surpass the resistance at 1.6228 and thus confirmed the bearish outlook. And while there may be other attempts to ascend beyond the falling line, as suggested by the weekly technical indicators, it appears that the price is currently forming a double top pattern that implies a sharp decline once the neckline at 1.5968/65 is violated.

The distribution of positions in GBP/USD is heavily skewed in favour of the short ones—right now they constitute 71% of the market. In the meantime, only 29% of traders believe that the rally of the British Pound is not exhausted yet and will carry on.