GBP/USD stopped by Feb high

For now the latest up-move did not result in a breach of an important resistance zone at 1.6844/14. And even though majority of the forecasts imply depreciation of the Sterling in the coming months (to 1.64 in Q2 and 1.63 in Q3), we still cannot rule out a rally up to the 2009 highs at 1.70. An advancement far beyond that point, in the meantime, is highly unlikely, in part due to presence of a rising trend-line at 1.71.

While yesterday the sentiment towards GBP/USD was moderately negative—60% of open positions were short, today bearish views are even more popular—71% of the SWFX market participants expect the Pound to cede ground.