Rallies limited in GBPUSD
Although the immediate bias is bullish, rallies are to be limited
Monthly: Moving higher from the 2016 low of 1.1905. The last two months have posted Inside Harami candles (or soldiers), a clear sign of investor indecision. Bespoke resistance is at 1.4390
Weekly: Moving higher within a bullish channel formation. Although we have seen a stalling in positive momentum close to the 261.8% extension of 1.4211 (from 1.1897-1.2781), there is no clear indication that the rally has come to an end (reversal formations)
Daily: Mixed trading for the last 53 days has seen GBPUSD hold within a corrective channel formation. A break of the trend of lower highs (1.4215) and we have a 261.8% extension located at 1.4483 (from 1.3699-1.3999), just behind our bespoke resistance.
This has resulted in the medium-term bias being bearish and we look to sell into rallies
Action:
We look to Sell at 1.4380
Stop: 1.4480
Targets: 1.3800 and 1.3565