GBP/USD….1.5198…..Weak Downtrend

by Admin

daily chart

GBPUSD: 1.5198

Short-Term Trend: weak downtrend

Outlook:

The recovery from the 1.4831 low is now enough to say with confidence that the 1st leg down from the early 2013 top has likely ended there. Now, the question is whether this decline (Jan-Mar) has been corrective or impulsive. For now, I will assume that this has been an impulsive wave down. But even in this case, a recovery twd 1.5400/1.5500 area seems likely before the downtrend can resume. This can take upto a month from now to complete (or even longer). So, we need to be patient here. Only if a rally twd 1.5500 develops, I think there will be a safer short entry point…

Strategy: Shorts favored at 1.5500. Stop=1.5700. Target=1.4700.