GBP/USD stops at 1.5898/50

Because of the strongly bearish for the Sterling fundamentals the support line at 1.5950 was violated yesterday. However, the demand area at 1.5898/50, consisting of the weekly and monthly S1 levels, managed to limit the losses. Eventually, this zone also should be eroded, since the currency pair is moving en route to the 200-day SMA at 1.5550.

The level of Pound's popularity in the SWFX marketplace has been on the rise since the last report. While yesterday only 31% of positions in Sterling crosses were long on the currency, today this portion is seven percentage points higher—38%. Accordingly, the sentiment towards GBP/USD has become less bearish, now 64% of traders are short on the currency pair (70% were short yesterday).