GBP/USD climbs back above 1.65

Despite a recent dip beneath the 2011 highs and 100-day SMA, GBP/USD managed to recover in a short period of time and it is already testing the weekly PP at 1.6538. If the tendency to pare the losses persists, the next significant resistance to try stopping the Sterling from going higher is going to be the rising line at 1.6620/1.6580, which, apart from the 55-day SMA, is also reinforced by the monthly pivot point.

The gap between the bullish and bearish market participants somewhat widened, but it did not change the fact that the overall sentiment towards the Cable is neutral. At the moment 45% of open positions are long and 55% are short.