GBPUSD: Remain Short as Prices Test Channel Support

[B]GBP/USD[/B]

[B]Strategy: Short at 1.5765, Targeting 1.5291
Weekly Profit / Loss: +77 pips
Total Profit / Loss: [/B][B]+77 pips[/B]

Last week, we sold GBPUSD at 1.5765 after prices showed an Evening Star candlestick formation and broke below the 1.58 figure, a major support in place since May 2009. Prices have started to move lower and are now finding near-term support at the bottom of a falling channel established from the swing high in mid-November, with 1.58 now turned into resistance. We will remain short, continuing to target 1.5291. A stop-loss will be activated on a daily close above 1.6000.

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