GBP/USD: First Pullback Setup Plays Out
Second Skies | May 16, 2013 02:59AM ET
Yesterday in my market commentary, we discussed looking for pullbacks towards two key levels to get short on the pound. The first was the 1.5279 level, and earlier today, price went up to 1.5272, and then sold off 99 pips from this level. This confirmed it as a pullback level where new shorts entered, so hats off to those that profited from this trade which offered a 3:1 reward to risk trade, and you didn’t have to wait for days for it to profit.
The pair now is showing some signs of more two way order flow, and a possible transition as buyers are attempting to hold the 1.5200 level with only a false break below it. First up for the counter-trend bulls would be the same 1.5272 and 20ema. If this breaks, then 1.5320 and 1.5412 would be up next. If sellers come back in at the first two levels, then a retest on 1.5200 would be in order, so plays on both sides here.
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