Sell GBPUSD against High
I have beating the US Dollar-bullish drum for a long time now, and indeed last week I started looking for a good opportunity to go long the Greenback against the GBP and EUR. I'd like to sell the GBPUSD against the high. Yet I don't think that current market price is an attractive hsort entry. I'd look to sell right around congestion near 1.6210, setting stops against the high. It's a good distance to the high, clearly. But this is a position trade that should pay dividends if the pair breaks 1.6000.
To recap my calls for USD rallies, here is what I wrote late last week: For one, Forex Futures and Options are uniformly flashing red on the USD. More recently, the SSI has been showing traders pull back from USD-short positions--something that often happens at the end of trends. And though I'm not entirely prepared to plug away at USD longs at the moment, headlines such as the one we see on the Wall Street Journal really underlines risks of a strong USD bounce. It's a waiting game for now.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.