GBP/USD returns to major up-trend

Although at first it looked as if the Pound is going to close above the weekly PP, in the end the bears overpowered the bulls and pushed the price back to the 15-month up-trend line. The support here is also provided by the monthly PP and 55-day SMA, meaning there is a good chance of a surge, also considering that the weekly and monthly indicators are giving ‘buy' signals. But if the demand is insufficient, the 100-day SMA could become the next target.

The gap between the bullish and bearish market participants narrowed even further, as the percentage of short positions declined to 54%. On the other hand, the portion of commands to sell the Sterling is gaining ground, right now they amount to 64%.