GBP/USD closes below 55-day SMA

A bearish breakout from the channel up revived the sell-off, which has pushed the price already beneath the moving average for 55 days. At the moment a line at 1.5240/33 is an obstacle for continuation of the leg down, while a monthly S1 level will also provide support in case the former proves to be insufficient. In case 1.5190 gives in, then the pair could dive as low as 1.4844/29.

While yesterday traders were largely neutral towards the Cable, today the share of bulls has grown up to 60%, indicating that more and more traders reckon GBP/USD has already reached its bottom. As for the orders, the ratio between the buy (52%) and the sell ones (48%) is unchanged from the last report.