The GBP/USD pair fell hard at the open on Monday, but managed a significant bounce back in the US session. This shows that there is continued support for the Pound, even as it keeps making new lows. The tone of this downtrend has been shown to be a grinding nature, and not a quick moving market. Because of this, we suggest selling rallies instead of holding onto the short position you may have as it will be whippy over the next several weeks in our opinion.
We see no credible reason to go long this pair, as it has broken down below the all-important 1.5750 area, and convincingly so. The pair will be difficult to trade at times, but we still feel the downtrend is going to continue overall.
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