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15 May 2013
Forex: Look to short bounces in GBP/USD – 2nd Skies Forex
FXstreet.com (Barcelona) - The sterling finished sharply lower for a second straight day, closing down 83 pips to finish at 1.5219. Given the steep descent over the last few days, some analysts are looking at shorting any short term bounce with a few key levels in mind that offer favorable resistance.
According to Chris Capre of 2nd Skies Forex, “For the last 400 pips, the pound has been selling off quite impulsively, with only two pullbacks for traders to get short and rejoin the trend. Both of these levels are not too far from here, but I haven't seen any signs in the price action that suggests this trend is over.”
He went on to add, “Based on the nature of this trend, I'm looking for more pullbacks instead of breakouts, and there are two levels I'm looking to get short. The first one is a more shallow level above at 1.5279, while the second is where a pin bar formed at a key level 1.5318, possibly lining up with the 20ema. So until we get a few 4hr closes above the 20ema, look for the downtrend to continue.”
According to Chris Capre of 2nd Skies Forex, “For the last 400 pips, the pound has been selling off quite impulsively, with only two pullbacks for traders to get short and rejoin the trend. Both of these levels are not too far from here, but I haven't seen any signs in the price action that suggests this trend is over.”
He went on to add, “Based on the nature of this trend, I'm looking for more pullbacks instead of breakouts, and there are two levels I'm looking to get short. The first one is a more shallow level above at 1.5279, while the second is where a pin bar formed at a key level 1.5318, possibly lining up with the 20ema. So until we get a few 4hr closes above the 20ema, look for the downtrend to continue.”