GBP/USD retreats from 100-day SMA

Being that GBP/USD has just broken out of the bullish channel to the downside and met a strong support level, there is likely to be a pullback up to 1.6784/76. And regardless of the bullish technical indicators on the weekly and monthly time-frames, the sell-off will probably resume with renewed vigour. If this is the case, apart from the 100-day SMA, the monthly S1 at 1.6051 and the 200-day SMA at 1.6489 will be standing in the Sterling's way.

The sentiment towards the Cable stays neutral, as there is almost no difference between the amounts of bullish (47%) and bearish (53%) market participants. On the other hand, 50 pips from the spot price 61% of orders are to sell the Pound against the buck.