Daily Trading Report for GBP/USD by CharmerCharts

Cable hit our upside target of 1.5875 and then fell sharply lower, breaking 1.5805 and hitting 1.5781. We have support to 1.5780, but now the move has been made to the downside, especially after the rejection of 1.5875, we should see the market continue to slide this session.

Below 1.5780 and we see 1.5760/55 as your targeted area. We may well hold here initially, but you should be ready go back into shorts then on any short term rally, with 1.5845/50 now looking to be a good top.

So we have support at 1.5780 initially...If we do hold this support there is a good case for the bulls to return..If this occurs and we do bounce and break the 1.5850 resistance we get resistance once more form 1.5875, and we would be selling into strength to here, keeping stops then above 1.5890.

Below 1.5755 we see 1.5730, then 1.5690...1.5690 offers quite good protection on the downside therefore cover all shorts for the time being.