GBP/USD at risk of forming double top

While trading within a rather poorly defined bullish channel (since late February), the Cable appears to be forming a double top with peaks on May 2 and May 25. Accordingly, if the price closes under the wide but at the same time dense demand area between 1.4344 and 1.4288, which consists of the neck-line, 100-day SMA and the lower bound of the channel, the new target will be the April's lows, namely 1.4050. Meanwhile, even if the Sterling does rise from 1.4344/1.4288, the gains are to be limited by the massive resistance circa 1.48 dollars.

There is still no consensus among SWFX traders with respect to the British Pound, being that 46% of them are long the currency and 54% are short. However, the sell orders exceed the buy ones: 61% versus 39%.