GBP/USD stalls in the face of 2009 high

Similarly to the situation in EUR/USD, the British Pound also lacks momentum, even though it has crossed 1.70. However, the 2009 high at 1.7044 remains intact and does not allow the current rally to develop further. If the bulls eventually overpower bears here, GBP/USD will have a good chance to surge up to 1.74, the upper edge of the upward-sloping channel it has been trading within since the beginning of 2013.

A great majority of the SWFX market participants remain convinced in the ability of the U.S. Dollar to outperform the Sterling—as many as 72% of open positions are short. Concerning the orders, 59% of them are placed to sell the Pound.