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GBP on Short Downtrend

By DailyForex.com

GBP-USD Analysis, July 7, 2011

Very Short-Term Trend: downtrend

Outlook: The British Pound hit below the 1.5990/70 level and we can therefore consider the hourly trend as down at the moment. The market has found some support at the 1.5945 level though, and further sideways trading may be possible. However, while the prices stay below 1.6030/40, the market will be decidedly bearish. A solid move below 1.5945 will likely bring losses toward 1.5820.  The good news is that once the indicated resistance negates, there may be another rise toward the 1.6114 level.

Strategy: Shorts favorable at market (1.5972).
Stop Loss =1.6020.
Target=1.5822. 

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