So I am finally getting back into the swing of things after my holiday and am glad to see that one of my earlier recommendations is making the right noises. As per my earlier post, I see GBPUSD as one of the best sells if you are getting bullish on the USD, which I am. Sentiment is rediculously skewed towards US dollar bears and in a debt deflationary scenario the USD will come out on top. I see no reason why we cannot head down to the 1.5500 region initially in GBPUSD and then re-assess there. 1.3500, as I mentioned before, is not as low a probability as you may believe. On the weekly chart above (click on image for a larger picture)there is a potential reversal pattern forming which will be triggered on a push under 1.6113. I would suggest getting short on pullbacks now but those who love their technicals and like to play it safe (and ultimately probably sit through more pain) may want to sell on the break. Good luck.
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