Focus returns to downside for GBPUSD after gains fall short
Trading in cable continues to be dominated by the Marabuzo line created by last Friday’s decline. Initial trading on Thursday saw gains, but the market failed to reach our sell level or test the key 13 day moving average.
The resulting fall was not extensive but iit did emphasise the importance of the Marabuzo line formed by last Friday’s deterioration. With that point capping price action and emphasising the weakness of the bounce from last week's bottom, the focus returns to the downside.
Management and risk description
A move to 1.2936 means the stop can be lowered to break even or better.
Entry: Sell in 1.2970/75 area and any 1.2992 bounce.
Stop: 1.3033 bid.
Target: 1.2936, 1.2914 or even towards 1.2866.
Time horizon: Intraday, ending 1600 hours, London time (1500 GMT).
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more