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TheForexFellows

GBP/USD - retracement of impulse before bigger move down?

Short
British Pound / U.S. Dollar (FX:GBPUSD)  
TheForexFellows  
FX:GBPUSD   British Pound / U.S. Dollar
Trend Analysis Trend Lines Chart Patterns Forex forexsignals forexanalysis GBPUSD gbpusdsell gbpusdshort gbpusdsignal gbpusdanalysis
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trendanalysis trendline chartpattern forex forexsignals forexanalysis gbpusd gbpusdsell gbpusdshort gbpusdsignal gbpusdanalysis
GBP/USD price has been, what we believe, to be in a retracement this week so far. After a strong impulse down last week, price is making it's way back into a region which we believe would be excellent for shorting opportunities. This zone represents a confluence between daily ascending support lines now turned resistance (since they have both been broken), the weekly descending trend line, the 100 DAY EMA, and the psychological level of 1.3000. After entry, targets for exit would be the 1.2760 that price briefly touched last week. If price can break that level of support, then a target of 1.2620 would seem sensible.

If price closes back above 1.3050 this analysis would become invalid.
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