GBP/USD puts pressure on 1.6590

The monthly pivot point failed to keep GBP/USD afloat and thereby exposed 1.6590/87. And even though this support area is quite dense, consisting of the 55-day SMA and weekly PP, the Sterling is capable of falling deeper, potentially down to 1.65, where it has much better chances of receiving a strong bullish impetus. The reason is that near this round level we have the 100-day SMA, 2011 highs and monthly S1.

The sentiment towards the Pound returned from moderately bearish to strongly bearish, being that the percentage of short positions open on GBP/USD has surged from 58% up to 68% since the previous report.