Since peaked at 1.7042 on August 02 2009, the GBPUSD keep moving lower significantly. Unlike most major currencies which “enjoy”  Dollar weakness, in contrary, the Sterling keep showing technical bearishness.

  • On my daily chart below, we can see a confirmation of head and shoulders bearish reversal scenario where the neckline has been violated to the downside. Now, the neckline become a resistance.
  • Price slipped below the minor trendline support (blue) indicating another potential weakness for the Sterling.
  • My key support level, beside the minor trendline support is the 1.5760 area, 38.2% Fibo retracement of 1.3653 – 1.7042. Break below that area should trigger further bearish scenario towards 1.5355 area.
  • Among the market negative sentiment for the Dollar, I know it’s a little bit uncomfortable to have a technical bearish view on GBPUSD. However, my chart is showing more bearish facts than bullish and my short trade was quite successful this week. An important lesson can be taken is always follow the facts not our feeling and opinion about how the market should move.

    Have a great weekend and see you guys next week  :)