GBP/USD puts pressure on 1.66

Despite the weekly and monthly technical indicators favouring a recovery, the Cable is currently testing a cluster of supports between 1.66 and 1.6550. If this key area gives in to the selling pressure, there will be few reasons for the currency pair to stop at least until it hits 2012 highs at 1.63. The only level capable of halting the decline is considered to be 1.65, which consists of the 2011 highs and 100-day SMA.

A dip in Sterling's price resulted in a significant decrease of the share of bearish SWFX market participants—from 59% down to 55%, meaning the sentiment returned to being neutral towards GBP/USD, just as five days ago.