As previously noted, the low of $1.4811 this past week resulted in a false break scenario and the subsequent price action is now squeezing the cable shorts. The GBPUSD pair has retraced around 38.2% of the last swing lower after a sharp reversal for the greenback following Bernanke’s comments this past week. This 38.2% Fibonacci retrace is an area that coincides with the broken trend line shown on the daily pound/dollar chart below. Above this is the 50% retracement level, around $.15260. This range mid-point is aligned with the longer term price pivot level. To the downside, the $1.5030 area is seen as key as it has ... (full story)