GBP/USD is trending down massively since December 21 inside the marked wide bearish channel & we had a long term short position at 1.5650 which we suggested two weeks ago.
Last friday, we mentioned that the view for the pair is still bearish and we suggested two short entries either at 1.5580 or after break of 1.5470 with TP at 1.5430 and 1.5370.
Yesterday, The pair recorded a low at 1.5280 which acted as a strong support level showing strong bulls strength manifested in the strong bullush hammer candelstick today.
Now the pair is more bearish as it's recording obvious lower lows following lower highs. However, selling now is highly risky as retracement is expected.
Now we should monitor our resistance levels at 1.5470 & 1.5580 and watch price action towards them in order to catch a good long term short position.
If we want to benefit from the expected retracement, Buying at 1.5305 is considered good with SL break of the low at 1.5280 with final TP at 1.5445 with profits taken each 50 pips as it's a counter-trend move.
