GBP/USD underpinned by 1.66

A strong support area at 1.6621/00, created by the monthly PP and the weekly S1, did not let the bearishness seen this Monday to persist. Judging by the near-term indicators, the Sterling is likely to recover from here. However, we should take into account substantial downside risks, as for the past 12 months GBP/USD has been forming a rising wedge pattern.

The gap between the bullish and bearish market participants once again narrowed, being that the share of the traders holding short positions increased from 53% up to 56%, making the difference significant. Meanwhile, there was no change in the portion of buy orders set 100 pips from the spot price—67% today and yesterday.