GBP/USD takes hit from weekly R1

Though GBP/USD failed to climb over the weekly R1 yesterday, there are still good chances that the 2009 highs will be soon re-tested. However, for the near-term outlook to stay bullish as it is now, the key support, namely 1.6776/35 should remain intact. And, considering that this demand area is the lower boundary of the 14-month upward-sloping channel, there is a high probability it is going to weather the selling pressure, at least for the time being.

The bears preserve a notable advantage in numbers over the bulls, meaning that the sentiment remains negative towards the Cable, with 64% of traders expecting the Sterling to underperform relative to the U.S. Dollar.