GBP/USD records 100+ pip rally

Despite the different directions implied by the various technical indicators, GBP/USD soared through the nearest resistances and reached the 2009 highs at 1.70. Since this level is likely to be a tough obstacle (reinforced by the monthly R1 and weekly R2), the upside could be limited. Consequently, there is a high chance of a sell-off emerging from here. However, we cannot rule out a rally to the upper boundary of the 14-month bullish channel at 1.7123.

Just as in EUR/USD, bearish views became even more popular due to a jump in the price. Right now as many as 73% of the SWFX market participants expect the Sterling to underperform relative to the U.S. Dollar (68% yesterday).