GBP/USD's rally stalls at 1.6688

Although the resistance at 1.6688 did in fact stop further recovery of the Sterling, the currency still does not seem to be in a hurry to descend. This may be justified by the presence of the monthly R1 at 1.6632, which appears to be rather strong. Nevertheless, the bears are expected to get an upper hand in the end and then drive the price down to a key level at 1.65.

The percentage of short positions open in the market has dropped down to 55% since the last report, when 59% of traders believed that the Pound is going to lose value. Meanwhile, among the orders placed 50 pips from the spot the share of buy ones soared from 29% up to 69%.