Intraday trading analysis (tips) for GBP/USD 16 May 2011, we recommend, Enter short in GBP/USD below 1.6205 for target of 1.6155 and 1.6115 also place protective stop loss order above 1.6225.
Reason to trade short: GBPUSD has seen reversal from 1.6725 level and now we see a good selling opportunity. Strong USD and weak GBP is responsible for this strong down trend. So this down move is likely to continue from the current level towards next support level. RSI support this down move and is in favor of the trade on 4 hour chart. So we can see the pair to weaken further and move towards its next support level which is at 1.6155, so trading in the direction of the trend we recommend to trade short on GBP/USD pair.