GBPUSD shows mildly negative signals
The rally from this month’s low stalled yesterday. Levels above the key 13-day moving average attracted selling interest. This reversed initial upside with the market closing near the lows. This bearishness – the rally failing also near a 25% correction point – is diluted, to a degree, by a failure to breach a Marabuzo line created by Tuesday’s improvement. But while this does encourage caution, our signals for sentiment are left mildly negative.
Management and risk description
A move to 1.3161 means the stop can be lowered to break even or better.
Entry: sell in 1.3200/05 area and any rally to 1.3230.
Stop: 1.3274 bid.
Target: 1.3161 and 1.3121.
Time horizon: intraday, (1600 London time).
— Edited by Gayle Bryant