Commentary: We wrote yesterday that “a well defined channel goes back to May 2006. Notice that the GBPUSD has broken below the midpoint of that channel. As such, a bearish bias is warranted until at least a test of channel support near 2.0100/2.0150.” The GBPUSD has plummeted and currently sits below 2.0400.
Again, we continue to favor the downside for a test of channel support, which is at 2.0111 today and increases about 4 pips per day.
Strategy: Bearish, move risk to 2.0698 (from 2.0831), target 2.0200