GBPUSD, Trading idea to sell at 1.6370.


As the British pound has retreated again after meeting selling interest at 1.6392/93 this morning, suggesting a temporary top has been formed at 1.6430 last week and consolidation with mild downside bias is seen for retracement to 1.6270 and possibly test of previous support at 1.6257, however, reckon 1.6200 would hold from here and bring another upmove later.

GBPUSD, trading idea to sell at 1.6370


In view of this, we are looking to sell cable on recovery but one must exit on such decline. Above 1.6400 would dampen this near term bearish view and risk a retest of 1.6430 (Friday’s high), break there would extend recent upmove to 1.6460/65, however, loss of upward momentum should limit upside to 1.6499 (61.8% projection of 1.5972 to 1.6364 measuring from 1.6257) and bring correction later.

Sell ar 1.6370, Target: 1.6270, Stop: 1.6405

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