Update for: 2011-12-05 - 2011-12-11

Posted on: Sunday, 04 December 2011 21:52

gbpusd

GBPUSD: 1.5595

 Short-Term Trend:  downtrend

Outlook:

GBP managed to rally abv 1.5680/1.5700 level and our hypothetical short poisition was stopped out. However, the price pattern on the hourly chart remained bearish and with the Friday's sell-off the daily chart looks very bearish again. So, despite the rally to 1.5778 last week, there is no reason to be bullish here. In fact I see no reason to be neutral as well. The ST picture remains bearish as long as the last week's top remains intact. So, I continue to favor the short side here expecting to see a move twd 1.5260 initially and 1.5000 eventually.
On the upside, gains abv 1.5700 and abv 1.5778 will turn the immediate prospects bullish, so if one is short, they should probably consider a stop somewhere abv 1.5700.

Strategy: The prev. short was stopped out at 1.5700. New shorts are favored against 1.5730.

Next Update: Sun, 12/11/2011.



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