Forex

GBP continues moving inside a big daily bearish AB Downswing A = 2.0125 B = 1.9481, holding below the current 1.9983/.786 retrace resistance after Tweezer Tops were created last week to send the market on a new dip move. The major AB Bear swing in the mid term timeframe A = 1.9791 B = 1.9375 features a retrace at the 1.9720/.86 area, where a set of Tweezer Tops send the pound on a bearish environment. Smaller timeframe today witnessed the completition of an ABCD Downswing A = 1.9634 B = 1.9472 with a C = 1.9534/.382 retrace and a D 1.618 extension reached at our target 1.9375 called in our morning video. Traders who followed our recommendation of shorting the GBP may now take profits and stand aside waiting for the next down wave to be formed and resume the selling mentality.