GBP/USD….1.5866….Sideways

by Admin

daily chart

GBPUSD: 1.5866

Short-Term Trend: sideways

Outlook:

GBP moved decisively lower last week and thus strengthened our bearish case. As you can see from the chart above, we now have a clear breakout below the trendline connecting the ending points of waves B and D. But we still need a move below 1.5820 (the end of wave D) to confirm the trend change. If that happens, a decline twd 1.5680 level can easily unfold.
On the upside, above 1.6100 will negate this bearish view and will suggest one more rally twd 1.6300 before the expected big move down starts.

Strategy: Holding short from 1.6170 is favored. Stop=1.6350.