GBP/USD edges lower

The beginning of a week is negative for riskier currencies. The British Pound depreciates against the U.S. Dollar from the monthly R1 level at 1.5362 through the weekly PP at 1.5335. The Cable sets a second bearish candle and is already halfway en route to the 20-day SMA, thus a possibility of a trend reverse should be considered. To open a position, it would be reasonable to wait for a test of the 20-day SMA.

Bullish traders cut their positions by 1% and currently the buy side amounts to 54%, indicating that the majority of investors still bet on continuation of an upside trend. Pending orders segment is bullish to a higher degree, as 59% of orders are ready to buy the Cable.