GBP/USD challenges 1.6596/87

Although for a brief moment it appeared that GBP/USD is going to take a break before resuming the recovery, right now it is already probing 1.6596/87. Once this resistance area, implied by the weekly R1 and the upper Bollinger band, is overcome, there will be only weekly R2 and monthly R1 standing between the current price and the 2011 high at 1.6745.

There are substantially more open short positions (71%) on GBP/USD than there are long ones (29%), meaning an overwhelming majority of traders expect the price to stop advancing and start falling. Among the orders there is now a noticeable advantage of sell ones (68%) compared to the buy ones (32%).