GBP/USD September 2, 8am UK Time

We are stuck in a range from 1.5583 – 1.5327 flanked by significant, long term fib levels. We saw a news driven burst up yesterday to the well known 1.5480 level with bulls losing control again. Cable slowly re-traced during Asia. We saw a typical Cable pattern into London open. Two short bursts up forming a double top usually followed by a stronger 50-70 pip down move. The latter is the one I am betting on for today’s open. The problem is that USD and the GBP are weak, making this a bit tricky to trade. As posted on twitter, we need to see a clear break below 1.5390 to see lower cable levels.

GBP/USD, September 2, 8am UK Time