GBP/USD – Despite the latest surge, the market has been well confined to a prominent range that has defined price action for the past several months. As such, any rallies towards 1.7000 should be used as a formidable opportunity to build on short positions, with only a break and close back above 1.7045 to negate outlook and give reason for pause. Conservative players may want to wait for a break back below 1.6670 before establishing a fresh short position. We will take a more aggressive approach and look to sell into strength if given the opportunity.
STRATEGY: SELL @1.6970 FOR AN OPEN OBJECTIVE; STOP 1.7120. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON TUESDAY. POSITION TO BELEVERAGED AT 3X.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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