GBPUSD: Weak rally keeps sentiment negative
As expected, yesterday saw a reaction to Friday’s powerful decline in GBPUSD. Buyers and profit-takers found levels marginally beneath 1.3000 to buy Cable but the resulting bounce was a limited one.
Friday’s Marabuzo line was not retested and yesterday's highs were not held and it is the weakness of the bounce from last week's base that ensures that intraday technical studies remain negative.
Management and risk description
A move to 1.3018 means the stop can be lowered to break even.
Entry: Sell in 1.3040/45 area and any 1.3074 rally.
Stop: 1.3104 bid.
Target: 1.3018, 1.2997 or even 1.2966.
Time horizon: Intraday, ending 1600 London time.
— Edited by Adam Courtenay
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