On Friday, May 7th, I wrote, “If it doesn’t resume in the direction of the 1hr to take out 1.4401, then it could retrace all the way back to 1.5117”. As of this writing, the GBP/USD has retraced to 1.5052 which is 65 pips away from the price I forecasted Friday. Therefore, from the lowest price it fell to Friday (1.4475) to the level it has retraced to yesterday (1.5052), it moved 577 PIPs just in the retracement alone! What a nice movement this is! Since I saw the short-term breaking, I temporarily took profit to wait for a retracement. I have entered several short positions around the area I forecasted Friday. Some of these were also limit sells at target areas of resistance as the GBP/USD moved up.

The GBP/USD will continue to move down and form a new low below 1.4475. For those who took my advice and either a) stayed in short and/or b) entered other short positions around 1.5052, you will enjoy another 600+ PIP movement downward soon. Even though the GBP/USD will move further down below 1.4475, it could temporarily go back up to the 1.5052 area to even 1.5123, which would be 71 PIPs on the other side of my forecasted level from Friday. If it does temporarily move to that area again within the next 24 hours, enter a good limit sell position and manage your risk appropriately. However, if this current short-term movement holds, as of this writing, then the 1hr movement will continue and move further down below 1.4475.

Regardless, the GBP/USD will move below 1.4475 within the next couple of days. It’s just a matter of how quickly it will happen.

Happy trading!
LattePIPs