Financial Advisor

Initial target for GBPUSD shorts established at 1.6420

As we saw from the early Asian session, GBPUSD held an extremely tight range near the psychologically important 6500 level. The moving average indicators at 21-, 55- and 100 are also around this level. Line 1 on the following chart indicates that the 6530-40 area could raise shorting opportunities, whilst line 2 provides confirmation that last week’s uptrend has been broken.  The initial target zone looks to be established around the 38.2 Fibonacci level at 1.6420.

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