GBP/USD grinds lower

There are less and less arguments in favour of a rally. First, the currency pair has been failing to make any meaningful progress for the last three weeks. Second, there is a decreasing number of technical indicators supporting appreciation of the Sterling. Nevertheless, there still are a lot of supports capable of preventing development of the current dip. The closest one is formed by the 2009 high at 1.7042, followed by the monthly PP and 55-day SMA.

The SWFX traders remain strongly convinced that the Great Britain Pound is overvalued relative to the U.S. Dollar, as evidenced by a large share of short positions opened in the market—72% of the total amount.