GBP/USD….1.5512….Downtrend

by Admin

daily chart

GBPUSD: 1.5512

Short-Term Trend: downtrend

Outlook:

GBP has reached the 1.5510/00 support level and even moved below there. It seems a small degree 5-wave move from the early January top is now complete on the daily chart. So, we may soon see a stronger counter-trend bounce back twd 1.5850/1.5900 area. On the other hand, the current downtrend remains strong and there are reasons to hold the bearish position. It is upto anyone to decide what’s best for them, but I will consider closing our hypothetical short position from 1.6170 – because the pfofit is decent and because there is now a greater risk of a pullback.
As before, the next key level on the downside is 1.5260 and I will expect this level to remain intact for now…

Strategy: Taking pfofits now from the 1.6170 short position is now favored.