GBP/USD: Overbought Short Term
Jason Sen | Aug 18, 2014 06:19AM ET
The GBP/USD held extremely important support at 1.6665/60 perfectly last week. This morning we have reached our first target and immediate resistance at 1.6720/25 for a 60 pip profit on our longs. However the pair will need to beat strong resistance at 1.6735/40 today to continue higher and target 1.6755 on the way to a selling opportunity at 1.6770/80. Exit longs and try shorts with a 20 pip stop above 1.6795.
We are overbought short term so we could fail to beat strong resistance at 1.6735/40 today. It may be worth trying shorts here with stops above 1.6755 and look for a drift lower to 1.6701/96 for some profit taking on shorts. If the pair continue lower look for 1.6675 but a retest of 1.6670/60 is a buying opportunity.
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