Technical Analysis GBP/USD fell to 55-day SMA
Pair’s Outlook
Although a breach of the resistance on Jun 30 represented by the 2009 high was considered to be a bullish sign, in the end the Sterling proved to be unable to sustain a rally. Right now GBP/USD is testing 1.6975/50 (monthly PP and 55-day SMA), but there is a high probability of the exchange rate falling down to the 17-month up-trend, monthly S1 and 100-day SMA at 1.6893/32. However, the weekly and monthly studies are mostly pointing upwards.
Traders’ Sentiment
Along with the depreciation of the British Pound there is a decreasing amount of traders considering currency to be overvalued. During the last five days the share of short positions has fallen from 74% down to 63%.
Source: Dukascopy
