DislikedI have gone short GBP/USD as profit taking will start taking place from this recent run up due to poor CPI & Employment data this week. I believe GBP/USD is going to fall to 1.40. Option traders are also betting that the pound is to fall to 1.40 rather than rally up to 1.45 according to bloomberg.com The entry was taken on the 23.6% fibanachi level 1.42011. You will see this month has a similar upward trend to that of last year September (chart below with arrow indicating sell off) when pound rallied up for the same reasons (Pricing in interest...Ignored
Due to the success of the trade I added another short position.
So far gbp/USD has tanked over 100 points.
As expected the boe govenar showed concerns over employment data, cpi as well as the poor retail sales we got today.
The trade is on target for 1.40 and the fundamental/sentiment outlook will see it through.
The trade could possibly hit target tonight as 1.40 is the s3 pivot