Pending Short GBPUSD
The GBPUSD continues to remain bounded by its descending channel; however, downside risks are capped by a rising trend line dating back to January 25th. As the dollar gains ground against most of its counterparts while the “crowd” bets on a pound rally, I do not rule out a selloff below 1.60. It is worth noting that the NIESR GDP estimate in January fell 0.1 percent after tumbling 0.5 percent the month prior. All in all, look to enter into a short position on a hourly break below 1.60, with a stop 1.6050 and a open target.
GBPUSD 1 Hour Chart
Source: FXCM’s Strategy Trader – Prepared by Michael Wright
Meanwhile, my short EURUSD at 1.37 got stopped out at break-even as I noted via our real time news feed. Indeed, the EURUSD posted an impressive selloff during the overnight trade. Going forward, I will look for prices to make a clear break below 1.36 before looking to enter into a short position.
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