GBP/USD technical update 9 June 2009
Although the GBP/USD dipped someway below my preferred support at 1.5920, the drop has all but reinforced my view that we could be set up for a significant down move in the coming weeks. Anyway, for the short term trader, a low-risk trading opportunity in GBP/USD is close at hand. As you can see from the chart here, the Sterling Pound (GBP/USD) has retraced nearly 50% of its sell off from 1.6661 to 1.5800 area. You will also notice that there is a daily low posted at 1.6240 a few days ago. That low, plus the 50% fibonacci level being close at hand, and the speed of the recovery, and a few other clues that I can’t explain in detail today, are all suggesting that if we can risk 20 pips at 1.6230, we can be rewarded handsomely. The short term outlook for Sterling Pound is that the rally from the 1.5800 level is close to exhaustion, and we should see it go back lower from somewhere near 1.6240. So go for it! No risk. no reward, right?
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