GBPUSD: Weak, Set To Extend Declines

Trading Discussion News and Economy
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GBPUSD: With GBP selling off to reverse its previous week gains and close lower at the end of the week, further bearishness is likely in the new week. This development leaves it targeting its support located at the 1.5450 level where a violation will call for a run at the 1.5400 level and then the 1.5320 level. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, the pair must return above the 1.5644 level to reverse its past week losses and create scope for more upside towards the 1.5700 level. Further out, resistance resides at the 1.5900 level and then the 1.6000 level. On the whole, GBP continues to look vulnerable to the downside.

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Commercials are starting to take longs.

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I’d agree that they have quite rapidly increased their net long position over the last 3 weeks but by no means should you jump to the conclusion that the market is going to turn.
Always wait for price to confirm.
If you’ve got some longer term shorts you might want to tighten up your stop losses and maybe reduce risk on any new short trades you take.
We’re only 100 pips from 1.5400 and only 300 from the 1.5200 fig, which fulfills the large range the cable has been in for a couple of years.