Watch for negative correction to deepen for GBPUSD
As expected, Wednesday’s minor setback for GBPUSD proved to be only temporary. Yesterday saw the market attract fresh buying interest below 1.2800 and although the resulting upside was not extensive, Wednesday’s decline was mostly regained. This has kept Cable above the 200 day moving average and near the top of a positive daily Keltner channel.
Countering these positive factors though are a decline in Asia, lower highs and negative intraday divergence. These conflicting signals mean that immediate analysis has to be made with caution but, temporarily, we look for lower levels.
Management and risk description
A move to 1.2782 means the stop can be lowered to break even.
Entry: Sell in 1.2810/15 area and at 1.2830.
Stop: 1.2861 bid.
Target: 1.2782 and 1.2736.
Time horizon: Intraday, ending 1500 GMT
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