GBP/USD attempts to surpass Feb high

After an eventless beginning of the week GBP/USD soared 100 pips and it is already testing a cluster of resistances around the recent Feb high. Should the bulls gain an upper hand, the rally will be expected to extend up to the 2009 highs at 1.70, as suggested by the daily and monthly technical studies. Alternatively, the currency pair could bounce off this supply zone and re-test a rising trend-line and 200-day SMA at 1.66.

A precipitous increase in the Sterling's value yesterday resulted in a growth in the share of bearish market participants (from 58% to 60%) and a significant drop in the percentage of buy orders—from 70% down to 36%.