Timeframe: W1
Recommendation: Short Position
Entry Zone: 1.7150 – 1.7200
Take Profit Zone: 1.6400 – 1.6450
Stop Loss Zone: 1.7300 – 1.7350
The GBPUSD has rallied strongly since July 2013. The rally took this currency pair from an intra-day low of 1.4813 to an intra-day high of 1.7179 and price action is currently located near this intra-day high. This currency pair has not corrected since the sharp move higher started and forex traders should be prepared for a potential correction to its 38.2 Fibonacci Retracement Fan where it is likely to find support. A correction is needed in order to keep the uptrend healthy.
Forex traders should be cautious around current levels, but expect price action to find reasons to correct from current elevated levels. Any rallies from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential remains attractive in the short-term.
