Short Note on GBPUSD

With todays good news for the pound, GBPUSD starts its climb higher. EURGBP, as mentioned in the previous post, has taken a beating and i will we will see some more downside to it atleast till 8670. As shown in the chart, 1.6280-1.6300 should serve as a very good resistance for GBPUSD and i would expect this to hold atleast for today and maybe tomorrow as well.

So any approach towards this zone can be shorted quite safely. So, with this scenario of EURGBP weakness and GBPUSD approaching its resistance zone, it would be very interesting to watch EURUSD. Would it fall? Add to this the fact of the rate hike this Thursday by ECB and we have a real guessing game going on about what the reaction of the euro would be.

So, for now, it is safer to look for shorts on eurgbp and gbpusd than meddle with EURUSD. Stay out of EURUSD until the direction is clear.

Trade safe !!