Published On: Wed, Feb 15th, 2017

GBPUSD takes a bearish move below key average

InstaForex

Background

Monday’s modest gains only led to temporary and limited upside on Tuesday. A renewal of selling interest dominated the latter part of the day, with the resulting decline being the most negative performance for eight days.

This only took Cable back to the Marabuzo line created on January 23 and continued the oscillation around the 13 day moving average. So, once again, immediate signals for sentiment cannot be strong until the average is left behind, but a close near the lows places our focus on the downside.

Management and risk description

A move below 1.2439 means the stop can be lowered to break even or better.

Parameters

Entry: Sell in 1.2470/75 area and at 1.2508.

Stop: 1.2549 bid.

Target: 1.2439, 1.2412 or even 1.2370.

Time horizon: intraday, ending 1600 GMT.

Around average


Cable sentiment reversed


Long-term GBPUSD trend

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— Edited by Robert Ryan

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