GBP/USD gravitates towards 1.6206/04

January high at 1.6390 proved to be an unreliable support level and allowed the dip to reach the 20-day SMA, which is deemed to be insufficiently strong in order to fully stop the sell-off. A combination of the monthly pivot point and the major down-trend support at 1.6206/04, on the other hand, is expected to prevent further development of the bearish leg and restore positive outlook on the currency pair.

The difference between the numbers of long and short positions has contracted, but the sentiment still remains notably bearish on the pair—72% of traders consider it has already topped out and therefore should decline from here, though the Sterling is rapidly gaining popularity in its other crosses.