GBP/USD rebounds from 20-day SMA

Although there were no notable supports nearby, GBP/USD went in the direction suggested by the technical indicators, namely north. Right now the Sterling is testing the weekly PP, one of the few potential obstacles that stand between the spot price and a re-test of the key level at 1.70. Still, if the latter resistance is broken, we will be looking for the pair to be sold off above the monthly R2 at 1.7123, where it is supposed to meet the up-trend.

The sentiment of the SWFX market with respect to GBP/USD is exactly the same as yesterday, with 64% of open positions being short. Concerning the orders, at the moment 56% of them are set to sell the Pound against the buck.