Sterling/dollar is on its way towards its 200-day exponential moving average (EMA) at $1.5880 and perhaps below, says Matt Shaw at www.financialtrading.co.
Should it end two consecutive sessions below the 200-day EMA, expect it to drop to $1.5750 before the buyers return in force. I am shorting sterling with 50-pip stops, with a maximum target at $1.5760. Once it bounces, I would then go long on a break of $1.58.
