GBPUSD - Cautiously Bearish and Sell 1.2420 Rally

28 Jun 2020

A near 14 Big Fig rally since March’s 25 year low at 1.1409 has stalled in June from close to the key daily average rates and signals in each of the last 2 weeks have pointed to staying short and selling the rally, last week at 1.2488. This was the correct strategy as initial gains of 2 Big Figs attracted sellers from in between the 100 & 200 day lines and for sentiment to deteriorate for an unchanged close. This is negative, but until the last 5 week Marabuzo line is broken the outlook for this week remains just cautiously bearish and the call is to sell modestly on the open and then at 1.2420, Friday’s opening trade with a stop loss at 1.2568, the 18th June top. Targets are to 1.2260, the last 5 week Marabuzo line, 1.2173, the last 5 week open and 1.2072, May’s base.