GBP/USD consolidates at 1.5432/23

Yesterday the pair demonstrated propensity to rise. Even though the body of the previous bar is small and indicates that the Sterling depreciated, there is a long spike to the upside. Therefore we view 1.5432/23 as a temporary floor for the price action in the medium term, before the Cable challenges a key level at 1.5762/50. However, in order to arrive there, the resistance at 1.5468 needs to be overcome first.

A recent contraction in the amount of bearish positions opened in the GBP/USD market has been just reversed, since the portion of those expecting the Pound to underperform relative to the greenback increased back to 66%. At the same time the difference between the buy (44%) and sell orders (56%) is slightly less distinct.