GBP/USD: How Will Bear Gap Continue?
Steve Miley | Sep 11, 2014 03:29AM ET
GBP/USD: bear trend to likely continue AFTER bear gap is closed
A better bounce effort Wednesday after the aggressive sell off thus far this week and for September leaves the bias higher Thursday (maybe Friday too) for a close of the Monday bear gap, 1.6234-83.
However, we still look for a resumption of bear pressures, likely after a gap close, to aim back lower through mid-month.
The prior gap through the 38.2% retrace of the entire 2013-14 up leg at 1.6285, and chart supports 1.6252/20 leaves the bias still lower to the 50% longer term retrace at 1.6005, psychological 1.6000 and the 1.5854 weekly swing low from Q4 2013.
WHAT CHANGES THIS?
Above 1.6283 eases bear risks; through 1.6342 signals a neutral tone, only shifting positive above 1.6500.
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