The GBPUSD has been in a strong uptrend as visible in this H4 chart. There has been a big spike higher and this pair currently forms a temporary resistance level from which it is expected to descend into its ascending support line.
MACD is bullish and suggests further upside potential after a correction especially if it remains bullish during the downward move. RSI is trading in extreme overbought territory for an extended period of time and will not be able to maintain this condition.
We recommend a short position at 1.6045 with a potential addition at 1.6245. Should this pair breach 1.6100 to the upside we advise trader to place a long position in order to hedge the initial short before committing to new short positions in this trade.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 1.6100. We do not use stop loss levels and will execute this trade as mentioned above. Place your take profit level at 1.5945.
