The near term outlook remains under pressure and I see any bounce as a chance to sell now. Today’s reaction to in line inflation data for the UK has been mildly positive without any sharp move and I have taken this as my chance to sell.
I have placed my stop at $1.6546 (40 pips) above yesterday’s spike high at $1.6536 which was also bang on the 50% Fibonacci retracement of the $1.6250/$1.6822 move.
I expect a retest of $1.6459 on the way ultimately towards the $1.6380 target from the top pattern completed below $1.6580.
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