GBP/USD stands still before 1.72

Even though a majority of the technical studies are currently giving ‘buy' signals, the Cable remains unable to resume its recovery. The resistance at 1.72 and above stays intact, but in the end should give way for a rally up to 1.74, where the monthly R2 merges with the upper rising trend-line of the 16-month bullish channel. But if the Sterling starts ceding ground, the bulls may get reinforcement at the 2009 high—1.7044.

Both the exchange rate and the distribution between the bullish an bearish market participants remain stable. Just as last Friday, three out of four traders expect the British Pound to be outperformed by the U.S. Dollar.