The GBP/USD pair fell extremely hard during the Thursday session, and the 200 day exponential moving average has now given way to the bears. The pair looks like a sell only market at the moment, and is closing at the lows – signaling further declines in the near term.
The 1.58 level giving way will be a big deal, and now it appears that the 1.55 level is the next target for the bears. However, with the sudden fall, traders will be better served looking for a rally to sell on the short term charts. Certainly the mini moves to the upside will come, but this fall is far too strong to think it was only a sudden knee-jerk move. We are selling short-term rallies.
Written by FX Empire