The strategy of the trade in choosing the GBPUSD pair is simply to protect the two previous positions on the EURGBP cross rate from the previous market view report dated the 11th of June. This will likewise absorb any adverse price fluctuation over the weekend where market price action would unexpectedly be volatile. With the rising channel for the GBPUSD well intact the prices have recovered and past the first resistance level of 1.5610/20 while ignoring the fundamentally bearish report of the widening trade deficit of the UK earlier reported. While US Consumer confidence have dropped prompting the USDx to go below the 81.78 level ist defense of support. The closing price for the wekk would be carefully watched.
However, the mid-term corrective move may well be within its bearish trend line the next extension levels we would be expecting is at the 1.5720/50. While support is now well within the 1.5550/60 opening price levels for the week. A protective order on both currency pairs are in place within the next few hours of the trading week to overall settle all positions and wait for the outcome over the weekend. Since a net positive result is already made the probability to leave them open with uncertainty on the fundamental over the weekend would be unwise. However, the last trading hour would still be the best time and still see how the market would be reacting in anticipation for the weekend.
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