By: Doug Rosen
GBP/USD still has a very bearish appearance to me. Speed and momentum appear to be very strong to the downside but I cannot ignore the fact that we are still sitting on strong areas of support. If this pair can break 1.5915 I think we going down 100 pips to 1.5815 without a lot of fight in between.
On the other hand, I can also see that if we don't break 1.5915 and we get a bounce 100 pips up to 1.6015 I see more chop chop up above so I will hold out for shorts with this pair. I can also see that if this pair can rise to about 1.6030 there is a good chance there will be a reaction forcing this pair back down.
So, in a nutshell, if price hits 1.5915 and does not break that level, watch for a bounce to 1.6030 then look aty shorts back down. If it breaks 1.5915, wait for a fib or retest and take it short to 1.5815 at which point I would expect yet another bounce back up to at least 1.5850 and possibly even back up to 1.5930 GBP news around 7A NY time so be cautious.
