GBPUSD Finds Trend Line Resistance Creating Short Opportunity

A break below 132.00 triggered a short GBP/JPY trade last week which yielded over 300 pips in profit. The pair has retraced all of its losses aided by new stimulus efforts by the BoJ. However, the yen is back on track as markets weren’t impressed by the central bank’s efforts. Failure at the 20-Day SMA at 133.71 adds validity to the technical barrier and a break above should be considered a bullish sign. However, I will sit on the sidelines as long as policy makers are active as price action will remain unpredictable. I will shift my focus to the GBP/USD which is under pressure after finding trend line resistance, a break below 1.5500 will inspire a cautious short where I will look to add to my position below the 50-Day SMA at 1.5411.