This week poses a few good shorting opportunities for shorting the GBP/USD as long as traders are willing to wait for a decent set up.
The GBP/USD sold off about 545 pips last friday and has retrced close to 50% of that and is currently being contained by the 4 hour 50 ema and has formed a nice bear flag.
Its very possible for the price to retrace a little more to the 1.5870 -1.5950 area before another sell off. At these levels, I will be looking to short the pair and target the 1.5400 level at least but looking for the 1.5100 level.
Of course, there is always that possibility the pair will not retrace any further. If that should occur, I always have plan B in place. It seems that if the pair retraces no further that I will need to sell the pair if/when the 1 hour chart closes below the 1.5570 area and target the 1.5400 area first then on the 1.5100 level.
