GBP/USD violates 15-month up-trend

Even though the support at 1.6782/76 was deemed to be strong and most of the technical indicators were bullish, the Pound took a major hit yesterday. The currency plummeted through the monthly PP, 55-day SMA and, even more importantly, through the long-term up-trend line. Consequently, unless the price rises back above 1.68 in the nearest future, further depreciation of the Sterling seems to be the most likely scenario.

Just as in EUR/USD, here the share of bullish market participants is also increasing, from 46% yesterday to 49% today. As for the orders, the commands to sell (56%) the British Pound still have an advantage over the ones to purchase (44%) it.