GBP/USD (Intraday Forecast)
Trade in Progress: Sold GBP/USD at 1.5785, STOP ADJUSTED TO 1.5818, target at 1.5670.
The GBP/USD fell sharply during today’s early European session as dovish BOE minutes showed a push for larger stimulus among policymakers. The 100 pip drop this morning has benefitted our short trade from yesterday’s Candlestick Daily report, and rates are now approaching our target near last week’s lows at 1.5670. Given the strong selloff, any significant bullish reversals would be a sign that caution is warranted, and thus, it would be prudent to tighten the stop at this point.
Specifically, traders could look to lower the stop to 1.5818 (above today’s Asian session high) to substantially reduce the risk on the trade. Meanwhile, we will continue to look for drops down to the profit target at 1.5670 over the course of the day.