GBP/USD is headed towards 1.6050

GBP/USD has recently confirmed the falling resistance line, meaning the current sell-off is in a good position to extend down to 1.6050. In case there are rallies in the process, they should be limited by the down-trend and 23.6% Fibo retracement (of Jul-Sep decline). And if the Cable closes beneath the yearly low, the 2013 Q4 low at 1.5850 is bound to become the next objective, even though the monthly indicators are against such a scenario.

Over the weekend there was only a marginal shift in the percentage of long positions open—from 57 to 59%. In the meantime, the portion of orders to sell the Great British Pound soared from 64 up to 81%.