GBP/USD rebounds from 1.7042

As soon as the price dropped down to the 2009 high, the bulls became active and subsequently pushed the Cable through some of the nearest resistances. Judging by the technical indicators, the rally is likely to persist both in the short and long terms. If the current tendency is preserved, the next strong supply area will be hit at 1.7248/46 (monthly R1), but there should be an up-move to 1.74 before any pronounced bearish correction.

Just as yesterday and five days ago, the SWFX market seems to be strongly convinced that the British Pound is going to underperform—71% of traders have shorted the currency against the Buck.