GBP/USD Weekly Signal- Oct. 7, 2013

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By: John Ursus

GBPUSD Signal 10713

Timeframe: W1 Recommendation: Short Position
Entry Zone: 1.6125 – 1.6125
Take Profit Zone: 1.5925 – 1.5950
Stop Loss Zone: 1.6250 – 1.6275

The GBPUSD has shown strength, as visible in this W1 chart, which results from a combination of continued US Dollar weakness and strength in the British Pound Sterling. This currency pair now trades near its descending resistance level which has halted each attempt of a bullish breakout so far.

Traders should expect a minor pullback from current levels which should take the GBPUSD back down to its horizontal support level amid higher volatility. A minor correction is needed in order to lose extreme conditions and enable the healthy overall uptrend to resume.

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.