Flat GBPUSD, looking for re-entry points
I got stopped out of my GBPUSD-short position on Friday at a modest gain. To recap, I entered at the 1.6200 mark and, after the trade moved in my favor, tightened the stop loss to lock in an approximate 100 pip gain. I am subsequently flat, but I remain bullish the US Dollar--especially against the British pound and Euro. I will be on the lookout for re-entry points in the days ahead, but current short-term momentum hardly supports the case for further short positions.
To recap my calls for USD rallies, here is what I've written in the past 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.
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