FX.co ★ GBP/USD Sell Below Trendline, February 23, 2012 (Daily Strategy)

GBP/USD

The British pound - U. S. Dollar pair, has recovered from the sharp drop that was yesterday, the level of 1.5640. has proved to be strong support, because in four previous sessions the pair has not been able to break this level. the 50-day moving average,supports the strong level of support.

As we can see the yellow box, shows that the pound has been stagnated at range of 230 pips and is trading below its downtrend line short term.

Therefore recommend you sell below the trend line and the stop loss above the second resistance weekly, our short-term goal, it is placed right in the second weekly support around 1.5560 dollars per pound.