Forex Trading: GBP/USD Sinking Towards Target

The GBPUSD short from yesterday is already closing in the initial target of 15830, which is defined by the November low and 50% retracement of the rally from the June 2012 low. If 15830 is reached today then I'll get out. If it is not, then I'll leave the stop at 15955 (which has been moved down over the last day from the original 16185 to 16105 (breakeven) to 15955). The logic here is that if 15830 is reached today then this move is probably exhaustive. If not reached today, then we'll see what happens in London on Monday, reserving the right to squeeze more out of this move.

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

Subscribe to Jamie Saettele's distribution list in order to receive actionable FX trading strategy delivered to your inbox.

Jamie is the author of Sentiment in the Forex Market.