GBP/USD slips back to 1.63

Despite a significant risk of the Cable breaking the negatively-sloped resistance line at 1.6450 last week, in the end the bears took the upper hand and forced the Sterling to retreat to 1.63. And while the near-term technical indicators imply continuation of this sell-off further, the monthly studies suggest the downward momentum may have already been exhausted. But as long as the resistance at 1.6750 is not breached, the bears should be in control.

Most of the SWFX market participants consider the Pound to be undervalued—59% of open positions are long. As for the pending orders, the difference between them is insignificant at the moment, only four percentage points.