Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Short Cable

Short Cable

Sterling has ripped by nearly 3% against the US Dollar since last Monday. This was likely from a combination of factors, key of which has been a massive bout of weakness in the Greenback. This has led to an aggressive bear-flag formation in GBP/USD that began to break yesterday, and after bouncing off of a short-term trend-line last night, the pair is working on what could be a lower-high right now.

The full setup is explained here.

This opens the door for short-side swing setups in the direction of the previous move (the ‘Brexit fear trade’).

Stops above the 61.8% Fibonacci retracement of the previous major move at 1.4303, with profit targets set to 1.4078 (prior price action swing low), 1.4000 (major psychological level), 1.3917 (27.2% extension of previous major move) and 1.3834 (previous swing low).

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES