GBP/USD: Down To 1.6115
Jason Sen | Sep 09, 2014 08:43AM ET
GBPUSD gapped open below 1.6290/80 and broke this year's previous low at 1.6250 to hit the 1.6115 target. Over night we are hitting our next target and excellent longer term support at 1.6085/80. This is key for today. In just 5 sessions the pair has dropped over 500 pips. A bounce from 1.6085/80 is possible and could take us back to 1.6140/45. The bear trend dominates of course and we may make it no higher but shorts need stops above 1.6165. We could then target 1.6185/90 for a selling opportunity with stops above 1.6210.
Although severely oversold there is no guarantee excellent longer term support at 1.6085/80 will hold the downside. Any longs therefore need stops below 1.6050. Go with a break lower using 1.6085/80 as resistance and look for a move towards important longer term Fibonacci support at 1.6005 for profit taking on shorts.
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