GBP/USD Technical Strategy: Short at 1.5662, Targeting Below 1.4830

Floating Profit / Loss: +506 pips

We entered short GBPUSD at 1.5662. Prices recovered as expected after putting a Hammer candlestick. Initial resistance lines up at 1.5187, the 23.6% Fibonacci retracement, with a break above that clearing the way for a retest of a broken multi-year range bottom at 1.5296. We will continue to hold short and treat the bounce as an opportunity to add to the position in the coming days. A stop-loss will be triggered on a daily close above 1.5408.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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