Short-Term Trend: downtrend
What a market: EUR/USD is moving sharply up and GBP/USD is moving sharply down! And we are positioned correctly in both markets!
Now, the daily chart is quite negative here and further losses are expected this week. However I think that this market is not ready to move below 1.5260 key chart and Fibonacci level. So most likely we will see a decline twd this key level followed by another strong recovery.
On the upside, a rally abv 1.5890 seems unlikely at this stage. But only a move abv 1.5990 will negate the current bearish view....
Strategy: Holding short from 1.6170 is favored. Stop=1.5990. Target=1.5320.
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