Forex Trading: GBP/USD Sinking Towards Target
The GBPUSD short from yesterday is already closing in the initial target of 15830, which is defined by the November low and 50% retracement of the rally from the June 2012 low. If 15830 is reached today then I'll get out. If it is not, then I'll leave the stop at 15955 (which has been moved down over the last day from the original 16185 to 16105 (breakeven) to 15955). The logic here is that if 15830 is reached today then this move is probably exhaustive. If not reached today, then we'll see what happens in London on Monday, reserving the right to squeeze more out of this move.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.