By: Sara Patterson
Very Short-Term Trend: weak downtrend
Outlook: GBP found support at the 1.5781 level and staged a recovery of recent steep losses. This recovery has brought prices to 1.5945 and the market is now overbought on 60-min chart. These are conditions that usually pave the way for a resumption of the previous downtrend. A decline below 1.5900 will be a sign that the bears have taken control again.
On the upside, firm and sustained trading abvoe 1.5960 negates, risks recovery toward 1.6050.
Strategy: Holding short from 1.5940 is favorable.
Stop= 1.5985
Target= 1.5700