Last thursday the gbp/usd sold off nearly 550 pips only to retrace not quite 1/2 of that.Although, the 4 hour is being contained by the 50% and the 50 ema, there is still a possibility of a deeper retracement to the 1.5870 to the 1.5950 area where I will be looking to short, targeting the 1.5400 then the 1.5100 area. Of course there is the possibility of the gbp/usd dropping from here, therefore, its necessary to have a PLAN B in place. Should there be no further retracement, I will be looking to short a 1 hour close below the 1.5570 area with the same targets I would use from the 4 hr chart mentioned above.
