GBP/USD Weekly Outlook and Trading Idea

  on May 13 2013 8:20 AM

GBPUSD: 1.5359

Short-Term Trend: weak downtrend

Outlook: As expected tha advance in GBP stalled last week and we saw a sharp decline twd the lower trendline of the channel drawn from the March low. Now, if our assessment is correct, another bounce should follow twd 1.5600 level and possibly slightly higher (to 1.5680). A move abv 1.5460 will confirm this view. However, if the pair continues lower and moves below 1.5200 support, the odds will increase that the larger-degree downtrend from Jan 2013 top has already resumed for 1.4560...

Strategy: Shorts favored at 1.5620. Stop=1.5820. Target=1.4700.

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