JP Morgan books profit on GBP/USD short

Trade update on GBP/USD: We took full profit on our shorts from 1.5576 at 1.5223 ( 2.32%) The price action in the hourly chart suggests that the down-momentum is pretty much gone, risking a stronger bounce which could potentially stretch out to 1.5551 (minor 76.4 %). We therefore decided to take full profit on our shorts from 1.5576.    Here is the original sell-recommendation from 18th of September:    FX Tech Alert: Sell GBP/USD for a decline to 1.4950 The market has reached the key-resistance zone on big scale between 1.5663 and 1.5749/1.5815 (int. 76.4 % on 2 scales/pivot) where a countertrend rally would distinguish itself from a broader up-trend into at least 1.6188 (61.8 % on higher scale). That said and as long as 1.5815 is not taken out we see a high risk of at least missing another leg down to key-support at 1.4951/1.4887 (pivot/int. 76.4 %) with the option to resume the long-term downtrend. A slight extension up to 1.5749/1.5815 can however not be excluded in the moment, which we’d use to add up. If the market opts for a straight reversal down we’d do so on a break below 1.5533 (minor 38.2 %).  Strategy: We sold at 1.5642, add at 1.5745 or at 1.5510 on stop, targets 1.5100 & 1.4970, stop at 1.5850

(JP MORGAN)

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