GBP/USD plummets

Weekly technical indicators seem to have given a correct forecast, as the Sterling is being heavily sold off from 1.5233, the lowest price level in 2012 and at the same time a formidable resistance line that has been denying attempts of GBP/USD to recover for more than a month. Currently the pair is struggling at 1.5129/1.5096, whereas a real challenge to the bearish momentum should be at 1.4829, a local low.

The latest fall of the pair did not go unnoticed. Once GBP/USD fell, a large amount of traders started to buy on the dip, bringing the percentage of long positions up to 64%. At the same time the Pound has become one of the most frequently acquired currencies, 62% of positions opened in GBP crosses are in favour of the Sterling.