GBPUSD - Watch for short! Or go short.
The trend is still up. The question is for how long? Until the trend clearly ends and maybe reverses, we can not say a double top is in. I always like to see it confirmed and announce it in past tense, rather than predict it too early.
Daily Slow Stoch turning down, and there is serious deterioration in price action on the 4 Hrs chart too. Good chance for the cable to come as low as 1,6660, or maybe down to 1,6610. But that is still a small correction within an existing massive uptrend.
On the daily chart the price is in a tightenning range, in between the uptrend line and the horizontal resistence. The really interesting level is between 1,6530 - 1,6610. If price breaks the uptrend and also validates a Kumo breakout on the downside, then we will see a nice downtrend to unfold, with the firt target at 1,6000.
Strategy alternatives:
1. Sell at mkt px with stop at 1,6770
2. Accumulate shorts in more clips between 1,6700 - 1,6780, with stops above the horizontal resistence (1,6825)
3. Buy put options with strike px between 1,6500 - 1,6550. Maturity should be 1 month or 2 months, not to get killed by the Theta very quickly.
Daily Slow Stoch turning down, and there is serious deterioration in price action on the 4 Hrs chart too. Good chance for the cable to come as low as 1,6660, or maybe down to 1,6610. But that is still a small correction within an existing massive uptrend.
On the daily chart the price is in a tightenning range, in between the uptrend line and the horizontal resistence. The really interesting level is between 1,6530 - 1,6610. If price breaks the uptrend and also validates a Kumo breakout on the downside, then we will see a nice downtrend to unfold, with the firt target at 1,6000.
Strategy alternatives:
1. Sell at mkt px with stop at 1,6770
2. Accumulate shorts in more clips between 1,6700 - 1,6780, with stops above the horizontal resistence (1,6825)
3. Buy put options with strike px between 1,6500 - 1,6550. Maturity should be 1 month or 2 months, not to get killed by the Theta very quickly.
