Whilst I had not given up on the bearish outlook for GBPUSD, I had to out it on ice whilst it retraced beyond 38.2% to the 50%. However once it reached the latter Fibs level it stalled, once again placing it on my watchlist for short positions.
Yesterday's bearish engulfing candle may have tipped it's hand after yesterday's data-dump, and appears posied for for another leg down towards th 1.50 target.
With price now trading below the monthly pivot at 1.529 (call it 30) then we could consider this region for a sell-limit order, and hopefully catch an opening spike before it moves down. If we trade back above the pivot (always allow for noise around these levels) then do nor fret, as the analysis remains intact as long as we do not break yesterday's high.
Cable tips its hand
After yesterday’s data-dump for the UK we finally broke out of a 3-day range and suggest we have seen a swing high at the 50% retracement.