GBP/USD underpinned by monthly R1

As it turned out, GBP/USD found strong support at 1.6638/32, the current location of the weekly PP and the monthly R1. Judging by the daily and weekly technical studies, the currency pair is ready to launch yet another assault on the up-trend resistance line at 1.6829/17, which is reinforced by the monthly R2 and therefore has a high chance of withstanding the buying pressure.

The market has become slightly less pessimistic towards the Sterling, but most of the traders still expect the currency to lose value relative to the U.S. Dollar, as 61% of open positions are short. In the meantime, the distribution between the buy and sell orders is balanced—53% and 47% respectively.