GBP/USD Technical Strategy: Short at 1.5536, Targeting Below 1.5195

Floating Profit / Loss: +220 pips

We entered short GBPUSD at 1.5533. Prices have now met our initial objective at 1.5385 and broken below support at the bottom of a rising channel set from mid-March. The next key downside barrier lines up in the 1.5195-1.5249 area, marked by the April 23 low and the 23.6% Fibonacci expansion. Risk/reward conditions argue against adding to the trade at current levels but we will remain short, looking for a drop through support to expose the 38.2% level at 1.5029. The stop-loss has been adjusted to the breakeven level.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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