GBP/USD is trading 0.25% lower on the day at 1.3675 after failing to hold and break above the 200 DMA. We also note the shooting star on the daily candle from yesterday (Thursday). This gives us belief that the pair is likely going to head lower in coming days/weeks. This is shown on the below chart (red line being the 200 DMA).

With the turn lower and confirmation from the technicals, we can’t see any good support until 1.3525. We have gone short GBPUSD and think it offers good risk/reward levels. A break and hold above the 200 DMA around the 1.3700 barrier within the next couple of trading days would make us review our view.

Source: IG

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