GBP/USD. Dealers Comment

Sterling’s inability of developing an upward motion above $1.6480 disappointed bulls and provoked some shortening of long positions, which went on further today after support at $1.6350 was broken. Drop below bids in stated area became a catalyst of avalanche-like execution of stops (which were placed below; near buy orders at $1.6325/2 and also in the figure area), which lead to setting session lows near $1.6282 by now. However, demand in this area proves to be strong enough to keep bears from advancing and now pair is holding ground at $1.6324. On top of that, dealers accentuate that meanwhile news regarding increased Swine influenza death count and IMF commentary on situation in Great Britain both look negative for GBP, the market situation is still favorable for bulls, which have somewhat activated under the 63rd figure. Yesterday profit surveys released by IBM and Google proved to be better than analysts expected. Dealers think that under condition of absence of strong negative news regarding economic statistics, GBP bulls may take advantage of increased risk appetite to resume advancing. However, they also warn that stops are seen under bids near $1.6280 too, and offers are now found around $1.6325 and $1.6350.