GBP/USD Strategy: Short Trade Triggered Below 1.52
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- GBP/USD Technical Strategy: Short at 1.5157
- Pound Looks Likely to Extend Down Move as Prices Break September Low
- Short Position Triggered Below 1.52, Aiming for a Decline to 1.50 Figure
The British Pound looks likely to continue to lower against the US Dollar after prices pierced support at September’s swing bottom. Prices resumed downward momentum after retesting rising trend line support-turned-resistance set from early May.
Near-term support is now at 1.5003, the 100% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 123.6% level at 1.4848. Alternatively, a turn back above the 1.5157-67 area marked by the September 4 close and the 76.4% Fib clears the way for a challenge of the 61.8% expansion at 1.5253.
We booked profit on our GBPUSD short position from 1.5500 as the latest corrective upswing began. Positioning now looks attractive to re-enter the trade and we have sold the pair at 1.5157, initially targeting 1.5003. A stop-loss will be activated on a daily close above 1.5167. We will take profit on half of the trade and trail the stop-loss to the breakeven level once the first objective is met.
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