GBP/USD rises above 2009 high

Although the Cable has been hesitating to extend the rally the past two weeks, in the end the exchange rate managed to overcome the 2009 high at 1.7044. Accordingly, instead of forming a rising wedge by falling to 1.68, the Sterling should now move further north. The medium-term target is considered to be 1.74. There the monthly R2 level merges with the upper rising trend-line of the bullish channel and is therefore capable of initiating a downward correction.

While the percentage of the bearish market participants is more or less the same as yesterday—70%, the portion of the sell orders plunged compared to the previous report, specifically from 63% to 54%.