GBP/USD
Strategy: Short at 1.6648, Targeting 1.6260
Weekly Profit / Loss: +303 pips
Last week, we sold GBPUSD at 1.6648 as prices put in a bearish Evening Doji Star candlestick pattern with added confirmation in negative RSI divergence and a daily close below support at a rising trend line established from October's swing low. The trade has worked out as expected, with prices all but hitting our soft target at 1.6260. We expect weakness to continue and will remain short, with a move past the initial target level allowing us to move our stop-loss to break even and revising the profit target to near 1.61. For now, the risk cutoff remains triggered on a daily close above 1.6882, the 11/16 wick high.
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