Guest Commentary: GBP/USD - Currency Wars Can Be Both Profitable and Nasty Too!
* Cable remains within an aggressive downtrend showing very similar characteristics to the last 11 cent decline last May...the long awaited Nasty II trade.
Following the long awaited spike of 1.6380 and the trend sequence down to 1.5990 and the subsequent bounce to the 50% region, we have stayed short and added on what should prove to be a critical break of 1.5990.
So although the decline has slowed at the initial target area between the 4 month 1.5825 low and the 1.5790 equality target allowing more than one opportunity to reduce shorts and sucking in Eurodollar correlation longs, the current consolidation in a projected 1.5790-1.5895 range is merely pausing the downtrend and possibly providing another opportunity to sell above 1.59 at the 1.5920 50% retrace before Sterling breaks down again to the next target at the 1,618 multiple of 1.5550.
The 1.5970-90 previous lows should now cap to maintain momentum but our stops stay at 1.6040.
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