The breach down in GBP pairs I’ve been waiting for the last few days finally happened, and the daily close should finally confirm we’re going down for a continuation of the corrective patterns started at the beginning of the month (close below 154 should do the trick). On GJ, the breach of the daily trendline is now imminent, together with a clear break through the good support area @154 (quadruple bottom yesterday). My target areas are 150 & 148 for the near future (up to 2 weeks price action).
Does that mean we’re going straight down from here? I really don’t think so… A quick look at ALL the GBP pairs H1-H4 charts will show that Pound has aggressively bounced against all the other majors (EUR, CHF, USD, JPY) & is now correcting higher – that can be a sign to avoid this phase if you want to join the ride on the short side & wait for pullbacks up to 153.60 – 154 in GBPJPY and 1.6275 – 1.6300 in GBPUSD. Those should be good levels to enter short with reasonable stops (not more than 100 pips) for rallies of at least 300-400 pips (maybe even more on GJ if the drop is well sustained).