GBP/USD: Unwinding Overbought Conditions
Jason Sen | Apr 02, 2014 05:58AM ET
The GBP/USD headed lower as expected to 1.6620/10 and bottom exactly here as predicted. We are in the process of unwinding an overbought short term stochastics, and could break lower today to a buying opportunity at 1.6595/85. A good chance of a low for the day but longs need stops below 1.6570. We then look for the next buying opportunity at 1.6540/35.
Only above 1.6630 is more positive for today and targets 1.6655/60. If we continue higher a retest of the 2 day high this week at 1.6680/85 could hold a move higher. However be ready to go with a break to target resistance at 1.6715/20. Try shorts here with stops above 1.6745 for a retest of March highs at 1.6786.
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