GBP/USD plunges to monthly PP

The Cable took a major hit yesterday, plummeting all the way from the weekly PP down to the monthly pivot. Here the demand is likely to exceed the supply, considering a large number of various studies stuffed between 1.66 and 1.65. Still, we should be wary that GBP/USD is approaching the apex of the rising wedge pattern, meaning that it is expected to eventually break our of this formation to the downside.

As a result of a significant drop in the Pound's value, many of the traders decided to square off their positions, thereby bringing the overall sentiment back to neutrality (46% long and 54% short), as seen five days ago.