Dark clouds suggest contrarian trade in sterling
Everywhere I look, people are calling GBPUSD up to 1.40. But the last couple of days have formed a rather foreboding "dark cloud cover" candle on the daily chart and today we're struggling to retake 1.3552, which is Marabuzo resistance.
Management and risk description
We're only going to risk 30-40 ticks on this trade as it is counter to the recent trend.
Entry: sell at market (currently 1.3545-50).
Stop: above 1.3575-80.
Targets: trendlines that currently sit at 1.3430 and 1.3280.
Time horizon: one or two weeks.
Daily candlestick showing dark cloud cover" formation:
Weekly chart showing September's failure point of 1.3669 is a big Fibonacci level as well: