The GBP/USD pair gapped down significantly on open today, probably due to fears about the Volcano in Iceland and the long term effects it could have on the UK economy. I think the the top is likely in for wave 4 and we will continue down with the longer term trend from here on. It is fairly likely that the gap will close, and the pair may be forming a leading diagonal from the top at 1.5524 so a pullback is likely. Take this opportunity to get short with a stop above the recent high. Risk:Reward here is good as our target is below 1.46.
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