GBP/USD Daily Chart" title="GBP/USD Daily Chart" width="648" height="368">
GBP/USD: 1.6015
Short-Term Trend: weak uptrend
Outlook: The GBP has been in sideways consolidation since early October and the price pattern looks like a Contracting Triangle as shown on the chart above. If the wave count is correct, the market should hold above 1.5900 this week and should eventually break out to move toward 1.6380 level.
If however, a break below 1.5900 occurs, the odds will shift on the downside and that will suggest that the rally from this week's low is likely over.
Strategy: Shorts favored on break of 1.5893 with 150 pts stop.