GBP/USD fails to gain momentum

Despite the relatively elevated volatility observed yesterday (80-pip trading range) none of the key levels were broken. This left the exchange rate trapped between the February high together with the monthly R1 at 1.6822 and the weekly PP at 1.6801. But if we assume the technical indicators to be correct, the immediate resistance is more likely to be broken than to remain intact, thus paving the way towards the 2009 highs at 1.70.

Even more people decided to short sell the British Pound—their percentage now amounts to 74% (72% yesterday). However, the resistance is softening, being that the portion of sell orders around the current price fell—from 60% to 46%.