GBPUSD

GBPUSD has remained under a lot of pressure after trending downward consistently since mid july. The intensity of the selloff only seems to be increasing; which indicated that the pair might have a lot lower to go still. The sentiments are still negative with the Scottish vote for independence looming in the air until 18th September. Perhaps the overall strength of the USD index is probably added to the potency of this selloff.

The pair has opened lower this week by gapping downwards and it seems this kind of selling pressure will only continue at New York open.

As far as a potential trade set up is concerned; if you are not already short then we suggest going short on any rallies up to resistance levels at 1.62805 (r1), 1.64437 (r2) and 1.66543 (r3). The price target should be between 1.60000 (s1) and then 1.59200 (s2).