GBP/USD heads towards 1.74

Even though the Sterling's appreciation is currently decelerating, the upward momentum is likely to be preserved in the coming weeks. Once the currency overcomes the weekly R3 at 1.7172, there will be only the monthly R1 separating the spot and the mid-term target at 1.74 (monthly R2 and upper trend-line of the channel). The bullish outlook is also supported by a majority of the technical indicators, which are mostly pointing north.

While there was no change in the distribution between the bullish and bearish market participants (26% bulls and 74% bears), the concentration of the orders set to sell the British Pound went up, from 55% to 61%.