We continue to view the GBPUSD as downtrending, with strong confirmation in recent price action supporting our case for further weakness into Friday.

The down trend line intercepts at 1.9875, and this will be the key level for the short-term trend.

Traders may still be short from last week, but for those not yet in positions we continue to favour shorts below 1.9875.

An entry as close as possible to this zone would be the most appropriate strategy.

A stop loss on shorts could be placed above 1.9977 (three-day highs).

We see the next support at 1.9650 (June lows), and that’s the area to be looking to cover short positions.

This trade idea has not taken into account the ASR Capital Management Model and as such you may be risking more than $200 by following the relevant trade specifications.

Members may enter this trade based upon the above criteria at their own discretion and we may update this trade’s progress in further reports in the future.