GBP/USD remains bearish

As the Cable failed to rise above the weekly PP yesterday, it extended the decline from 1.70, closing in the end near the weekly S1 and monthly PP. If this area does not provide enough support, then the rising trend-line, in conjunction with the 55-day SMA and weekly S2, will try to stop the current sell-off and realise the scenario implied by the daily and monthly technical indicators, namely a recovery.

Even though to a lesser extent than in EUR/USD, but the sentiment here is also becoming less bearish. At the moment 38% of the SWFX market participants expect the Pound to gain value. Last Wednesday their share was merely 27%.