GBP/USD re-tests 2009 highs

The Cable may have gained a strong bullish momentum, but there are still tough resistances standing in its way. The main short-term obstacle is the latest peak at 1.6822, which was reached on Feb 17. It is also reinforced by the monthly R1 level, making it capable of initiating sell-off back to the monthly PP. Conversely, in case the hurdle is overcome, there will be almost no reasons to doubt Sterling's ability to rally towards the 2009 highs at 1.70.

SWFX traders are getting more and more doubtful with respect to the British Pound's potential to appreciate further. Compared to the previous readings, the share of bearish market participants grew from 60% up to 62%, which in turn is the 10-day average.