"There are enough warning signals to suggest that this is the time to exit long-sterling positions."
- Commerzbank (based on Bloomberg)
It seems that bulls are taking a step back after reaching new relative high as short term RSI and Stochastic indicators point at the weakness of the pair. There is a chance we might see rallies up to 1.605, but 1.610 and higher remains rather tough targets to meet. From this point on we could expect for the pair to trail towards 1.57.
Sentiment on the cable-greenback cross became noticeably more bearish. Additional 4% of the traders became short on the pair as bears now account for 74% of market participants. Pending orders set to go short on the pair increased only by 2%, but as overall gauge is at 58% it makes a rather significant difference.