GBPUSD demand stalled and setback expected
Sterling strength dominated the bulk of Wednesday’s trading and confirmed our call with all positive targets met. But with cable at three-week highs, and overbought extremes, the extremes were not maintained as profit-taking developed. Going into today, trading has a gradually positive Keltner channel in the background but yesterday's upside rejection, replicated in Asia this morning, gives intraday sentiment a negative bias.
Management and risk description
A move to 1.3199 provides the opportunity to lower the stop to break-even.
Entry: sell in 1.3230/35 area and any rally to 1.3251.
Stop: 1.3280 bid.
Target: 1.3199, 1.3169 or even 1.3129.
Time horizon: intraday, ending 1600 London time.
Three up days