Strategy: Pending Short
GBPUSD recovered following a test of support at 1.5662, the 38.2% Fibonacci retracement level, with the bulls once again aiming to challenge the 1.59 figure. A Bearish Engulfing candlestick pattern below this boundary continues to argue for a broadly bearish bias and we will look for the upswing as an opportunity to enter short. The Engulfing is invalidated on a close above its high at 1.5928.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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