GBP/USD threatens down-trend resistance at 1.6450

Although GBP/USD hesitated at first, in the end it broke a tough resistance area near 1.63. This allowed the currency pair to challenge another important supply level at 1.6450 created by the down-trend line, which has been keeping the medium-term bearish outlook intact for the past three months. If it fails to stop the advancement and initiate a sell-off, we can expect continuation of the rally up to the 200-day SMA.

Despite significant appreciation of the Sterling lately, the sentiment towards GBP/USD has not been subject to change—59% of open positions are still long. Meanwhile, the portion of buy ones has plunged from 68 to 47%.