Strategy: Pending Short
GBPUSD put in a Bearish Engulfing candlestick pattern above trend line support established from the October 6 swing low, with negative RSI divergence reinforcing the case for a downside scenario. A break below the trend line (now at 1.5778) exposes resistance-turned-support at 1.5674. Alternatively, a bounce sees a major upside barrier at 1.5905, the July 11 session close.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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