GBP/USD set to decline to 1.68

In the wake of GBP/USD challenging the 2009 high, the Sterling is currently ceding ground. An immediate support level is at 1.6939/17, consisting of the weekly S1, 20-day SMA and monthly R1. But the sell-off is likely to persist until the rate hits 1.68. The demand there has a higher chance of restoring the bullish outlook. However, this potential rally may be only temporary, since there are substantial risks of the pair forming a rising wedge pattern.

There are still no notable shifts in the market's perception of the Cable, as a majority of the traders believe the Pound is going to depreciate relative to the buck. Meanwhile, the difference between the buy (48%) and sell (52%) orders stays largely insignificant.