GBP/USD backed up by 1.6742/29

By rebounding from the rising support line at 1.6742/29, which is reinforced by the 55-day SMA, the Cable preserved its bullish outlook. At the same time the weekly and monthly technical studies also imply a positive bias towards the Pound. However, judging by the recent past (early May) the gains are likely to be capped by 1.70, where the 2009 highs, together with the monthly R1, create a seemingly impenetrable wall of resistance.

The sentiment remains noticeably bearish with respect to GBP/USD, as a substantial majority (65%) of the SWFX market participants are staying short on the Sterling. As for the orders, the difference between the buy and sell ones is currently minimal.