The US Dollar looks to be positioning for gains against the British Pound. GBPUSD is showing a clear Bearish Engulfing candlestick pattern at the top of a Rising Wedge chart formation, a setup that is itself indicative of a downward reversal. Negative divergence on the RSI oscillator bolsters the case for losses in the days ahead. We will look to go short at market, initially looking for a decline to the previous swing bottom near 1.45, and keep a stop-loss above the last wick high at 1.5297**. A break beyond that will expose a return to test the double bottom at 1.3731.
** Stop-loss orders are activated on a daily close breaching the specified price level.
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