The GBP/USD has begun its decent for at least the next six months or longer. It recently took out two substantial levels of support at 1.5345 (from 12/28/2010) and 1.5295 (9/7/2010). Now that those levels of support have been taken out, my system is indicating that the GBP/USD should retrace back to around 1.5990 over the next month or so. Look for opportunities to go long on the GBP/USD up to the 1.5990 area, and then short the GBP/USD around 1.5990.

Happy trading!

LattePIPs