GBP/USD poised for more gains

The Great British Pound continues to strengthen after crossing the 2009 high, and the currency seems to be unlikely to stop until it reaches the edge of the bullish channel at 1.74. This is evidenced by a majority of the technical indicators giving 'buy' signals, though the advantage is not overwhelming. The immediate resistance is at 1.7182/72 (weekly R3 and Bollinger band), followed by the monthly R1 at 1.7248.

An overwhelming majority of the SWFX market participants consider the Sterling to be overvalued, namely 74% of them, and their number is increasing. As for the orders, the gap between the buy (45%) and sell (55%) ones is only marginal.