GBP/USD testing durability of a down-trend

GBP/USD launched yet another attack on the down-trend at 1.64, which has been intact since the beginning of July. If the currency pair succeeds, the resistance at 1.65 will have to come into play. This supply level is created by the 38.2% Fibonacci retracement and weekly R1 and should thus prompt a sell-off back to this year's low at 1.6050. However, most of the monthly technical indicators still protest against such a course of events.

There are slightly less long positions (57%) than yesterday (59%), but the overall sentiment towards GBP/USD in the SWFX market stays bullish. At the same time, the share of orders to sell the Pound grew from 52 to 61%.