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GBP/USD: Bearish Horizon

Published 09/17/2014, 01:27 AM
Updated 07/09/2023, 06:32 AM

Yesterday, cable managed to fill the gap left evident to 1.6317 although we only reached 1.6311. I think that is enough to fill the gap and now to come lower. The opening gap was the only blot on the bearish horizon although to be fair, all time frame charts are showing the market to be correcting even further as their stochastics are pointing higher. The 4-hour charts still point higher but are at slightly more neutral levels.

We are going to use this gap to 1.6317 again today and see if we can hold below here. If we can, there is scope for quite a move lower and it would be looking again at 1.6205/00 support. Cover shorts at this point and reinstate further shorts below 1.6200 as the market is likely to go done from these levels and to once more visit 1.6060/55.

Below here and the market looks weaker for the medium term target of 1.5800l.

GBP/USD Technicals

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