GBP/USD's rally halted by 1.6390

As feared, the first test of 1.6390 since Jan turned into a sell-off. The weekly PP at 1.6299 is highly unlikely to be able to stop the decline, instead we are looking at 1.6240/04 as a potential lower limit to the fluctuations in the nearest future. However, if this area does not turn the price around, the Sterling may then easily depreciate down to a different rising resistance line at 1.5970/61, the current level of the 100-day SMA at the moment as well.

The SWFX market participants became even less sure that the Great British Pound will manage to gain value, being that the portion of longs on GBP/USD fell by another four percentage points down to 26%. As for the orders set, 63% are to purchase and 37% are to sell the Sterling against the U.S. Dollar.