Testing the breakout...

Apr 14, 2013

GBPUSD has broken the wedge support a while ago. After breaking the support (Shown on chart as breakout #1) it has plunged all the way down to 1.48. If you check out my previous charts I was expecting 1.44 straight. But instead it reversed and went beck into 1.51 - 1.53 range. I am still bearish cause I believe that this was only the test of breakout #2. As long as we don't get over 1.5450 I will be short. Breaking this range will put 1.5600 again as initial target.

On the other hand on the daily chart we show a tweezer top, which is a sign of reversal. Also 1.5410 is the 38.2% retracement of the current down trend. So we will add to short till 1.5450, putting the stops above this level. I will reverse only if we reach 1.5480.