GBP/USD erodes 11-month up-trend

GBP/USD is currently testing the resistance created by the monthly R2 and the long-term rising trend-line. However, for now this formidable supply area does not seem to have a notable effect on the currency pair—it continues to advance. In case the Cable is not stopped at 1.68, the 2009 highs and the monthly R3 at 1.70 are likely to come into play.

The distribution between the long and short positions remains the same as last Friday. Right now the majority of the SWFX market participants, namely 65% of them, are in favour of the Sterling's depreciation against the U.S. Dollar. As for the orders, there is no difference between the numbers of buy (49%) and sell (51%) ones.