GBP/USD 1H Chart: Channel Down

Judging by the Cable's fluctuations in May, there is a bearish channel emerging on the hourly time-frame. Accordingly, the bias towards the currency pair is negative, but in the short term we are highly likely to see appreciation of the British Pound, as the currency has just bounced off the lower boundary of the pattern at 1.6674. Once GBP/USD overcomes the supply at 1.6777, there should be no significant obstacles until 1.6861, where the weekly R1 merges with the upper down-trend resistance line. Concerning the SWFX sentiment readings , the market seems to be undecided, since the shares of long and short positions are nearly equal at the moment—47 and 53 percent respectively.