Update for: 2012-05-28 - 2012-06-03

Posted on: Sunday, 27 May 2012 21:05


GBPUSD: 1.5664

 Short-Term Trend:  downtrend


Last week I hoped we will see a small rally twd 1.5900/20 before GBP started to acclerate lower. Such a rally did not occur and the British pound moved below 1.5680 level. Thus, there is a good chance that we are already in the acceleration phase of wave [5]. Based on the weekly chart (not shown here), wave [5] should move prices below 1.35 level. So, I am very bearish here. But it is one thing to expect something, and another to trade it safely. Right now, the only low-risk entry that I see is near 1.5900 level. I doubt a rally twd that level will develop this week, but if it does, it will likely be a good selling opportunity....

Strategy: Shorts favored at 1.5900/20 against 1.6120.

Next Update: Sun, 06/03/2012.

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