This Pound has had an amazing run and I do believe its going higher but im getting the feeling that a correction is due. We hit resistance at 1.3160 which also lines up with the 1.272 extension of the last leg up and I also have 4hour bearish divergence. Those 3 factors combined and seeing the DXY bottoming at the 93.00 level is giving me confidence to take this short. I want a tight stop loss on this one or if you take a small position you can put a wide stop loss because if this trade goes against you there is a high probability it will retest this level, act as support for the continued move up. I always want to put myself in a position where my entry point will be short term support turned resistance or vice versa - this gives me an opportunity to exit with small loss, break-even, or small profit.
Comment:
This looks really ugly guys I will repost similar thoughts - but this puppy tanked just after I posted @ 9:09 eastern time.