GBPUSD: Candles Hint Top Below 1.62
Strategy: Pending Short
GBPUSD has put in a Bearish Engulfing candlestick pattern below the 1.62 figure, hinting (at least) a near-term top may be in place. Negative RSI divergence reinforces the case for a downside scenario. However, the proximity of support at the 23.6% Fibonacci retracement of the rally from December’s low (1.6059) makes entering short at current levels unattractive from a risk/reward perspective and we will stand aside for now looking for a more actionable setup.
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