Update for: 2012-07-16 - 2012-07-22
Posted on: Sunday, 15 July 2012 16:04
Short-Term Trend: sideways
GBP fell to as low as 1.5393 last week but then bounced sharply on Friday. As result, the price action from the June's top remains quite choppy and it is still impossible to confirm the completion of wave (2) on the chart above. I suspect the market may need one more rise twd 1.5700+ in order to complete wave (2). All that makes trading here extremely difficult. Add the oversold conditions on the daily chart and the risk of an even larger rally increases further. So, it makes sense both to try to stick with the current short position, or to take a small profit and watch the market from the outside. It is really a tough decision that everyone should take for themselves.
Strategy: Holding short from 1.5650 is favored against 1.5725.
Next Update: Sun, 07/22/2012.
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