GBP/USD erodes 1.7042/19

Apparently, GBP/USD is not willing to use the opportunity to rebound from the 2009 high. If the price falls beneath 1.7042/19, the dip will most likely extend down to 1.6973/50 (monthly PP and 55-day SMA). There will also be a high probability of a test of the up-trend and 100-day SMA at 1.6890/32, despite five monthly indicators being bullish. In case both these demand areas are penetrated, the 200-day SMA at 1.67 will be exposed.

The sentiment is still distinctly bearish with respect to the British Pound, since as many as 67% of open positions are short. On the other hand, the share of commands to acquire the Sterling went up from 45% to 56%.