Cable provides fresh opportunity to initiate shorts

A couple of hours back I had mentioned here Quick look: GBP/USD awaits range breakout that GBP/USD has established range and now its a game of patience

Hourly chart

GBPUSD H1 (03-10-2016 0016).png

Its time to short the buck. The bid wave seen in the NY session failed to even see the pair test the higher end of the channel/range.

This tells me the bearish RSI divergence noted yesterday must be flexing muscle and limiting gains.

Hence I shorted cable @ 1.4223 for target of 1.4178 – 1.4142 with stop just above 1.4240

This might be tight stop, but i prefer that way. It may be blown couple of times but one can always enter rather than get stuck!


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