GBPUSD: Stay Short Through Corrective Upswing
Strategy: Short at 1.5765, Targeting 1.4781
Weekly Profit / Loss: -195 pips
Total Profit / Loss: +512 pips
We initially sold GBPUSD at 1.5765. Prices recovered this week and are now testing support-turned-resistance at the bottom of a previously broken falling channel established from the swing high in November 2009. Absent a break above this boundary (now at 1.5311), we see recent gains as corrective and will remain short, targeting the 03/01 wick low at 1.4781. A stop-loss will be activated on a daily close above 1.5533.
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