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GBP/USD: Down To 1.6115

Published 09/09/2014, 08:43 AM
Updated 07/09/2023, 06:31 AM

GBP/USD

GBPUSD gapped open below 1.6290/80 and broke this year's previous low at 1.6250 to hit the 1.6115 target. Over night we are hitting our next target and excellent longer term support at 1.6085/80. This is key for today. In just 5 sessions the pair has dropped over 500 pips. A bounce from 1.6085/80 is possible and could take us back to 1.6140/45. The bear trend dominates of course and we may make it no higher but shorts need stops above 1.6165. We could then target 1.6185/90 for a selling opportunity with stops above 1.6210.

Although severely oversold there is no guarantee excellent longer term support at 1.6085/80 will hold the downside. Any longs therefore need stops below 1.6050. Go with a break lower using 1.6085/80 as resistance and look for a move towards important longer term Fibonacci support at 1.6005 for profit taking on shorts.

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