FX.co ★ GBP/USD
Trader Journals:::
GBP/USD
Yesterdays trading showed strong bearishness for the GBP/USD currency pair, as the movement was to the downside. However, the critical support level of 1.3351 was holding up quite well and was yet to give way for the break to occur. This has somewhat helped to ward off the bearish move and give a chance to sellers to regroup. But for how long, as yet another shorting opportunity might be on the horizon as price rallies, signaling the next leg of selling. However, the current trend suggests that this is part of a retracement in the general downtrend, so an eye must be kept on key levels for tactical trading entries and exits. The first major downside target would be the untested support last Friday at 1.3351 and the potential target for the downside at around 1.3300. An important breakout above the level is likely to come up if a four-hour close is seen beyond the tough resistance area around 1.3445. In such a case, one could be looking at a change in trend, with upside targets seen at the resistance trend line of 1.3583. However, a cautious approach is advised and one should look for confirmation before being long. It is, however, worth noting that as to the inflation figures, the US always seems to have faith in its dollar over the pound—a factor that could establish a bearish bias among traders. Alternatively, being unable to pierce the resistance of 1.3452 may bring selling pressure and indicate how important 1.3452 is as a level for the bulls to keep control of.
