The GBPUSD continued its bearish momentum yesterday, bottomed at 1.5647 and closed at 1.5668. The bias remains bearish in nearest term but note that as long as stays above 1.5650 the bullish scenario since the break above the trend line resistance should remain intact. In fact, I think 1.5650 area is a good place for a long position due to a good risk – reward ratio, a tight stop loss below 1.5650 still targeting 1.5900 – 1.6000 area. On the downside, a clear break and daily close below 1.5650 would change my intraday bias to a bearish view at least testing 1.5550 – 1.5500 area.
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