GBP/USD Technical Strategy: Exit Short Position
Final Profit / Loss: +400 pips
We entered short GBPUSD at 1.5533. Prices met our second objective but signs of reversal have emerged above support at 1.5029, the 38.2% Fibonacci expansion. The pair has completed a Bullish Engulfing candlestick pattern and cleared resistance at the top of a falling channel set from early May. Positive RSI divergence reinforces the case for an upside scenario. We will book profits here and look to re-enter when a new sell signal presents itself.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya’s e-mail distribution list, please CLICK HERE
New to FX? Watch this Video. For live market updates, visit the Real Time News Feed