• GBP/USD fell from 1.3867 to 1.3160 encouraging specs to sell short

• Shorts which grew to $7 billion in March cut to $4.7 billion last week

• GBP/USD has extended its rise from last week's 1.3485 peak to 1.3525

• Rise has exceeded 1.3513 midway point of 1.3867-1.3160 fall

• Once profitable positions could become losing bets

• Stops likely above daily cloud top 1.3561 or 1.3597 61.8% Jan-Apr drop

• EUR/USD looking more bullish by the day

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GBP/USD


(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)