GBP/USD to try to reach 2009 highs

The Pound continues to recover after an encounter with a cluster of supports around 1.6750. This demand area consists of the monthly pivot point, 55-day SMA and the rising trend-line and is therefore unlikely to be breached in the short run. Moreover, even though the daily indicators are bearish, the studies on the weekly and monthly time-frames are mostly pointing upward. Accordingly, we may expect a re-test of the 2009 highs at 1.70.

The current distribution between the bulls and bears may be less skewed in favour of the latter than last Friday, but the majority of the open positions still imply than the British Pound will underperform relative to the U.S. Dollar.