GBP/USD Is Oversold, Expect Recovery To 1.6040

Published 11/07/2013, 06:09 AM
Updated 05/14/2017, 06:45 AM

GBP-USD reached our target of 1.6120 as expected which held the move higher as predicted. We looked for a high for the day to try shorts & topped almost exactly here at 1.6118. This trade worked perfectly as we fell back to 1.6080.

We could hold below here today & target 1.6035 but if we dip as far as 1.5985 we should see a low for the day for profit taking on our shorts. 1.6115/20 offers another selling opportunity with stops above 1.6150. Next resistance then at 1.6180/6200 for a second selling opportunity today.

Weekly outlook: The pair sold off last week as expected but oversold now & could stage a recovery this week to 1.6040/60 & possibly 1.6120 for a selling opportunity. However a break lower could target 1.5730/5710 for an excellent buying opportunity.
GBP/USD

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