Alan Collins explains why he feels GBPUSD will have an underlying negative tone in the coming days. despite yesterday's strong profit taking.

 

Alan says "Prices have fallen more than 6 big figures from May’s top and corrected almost exactly 50% of the rise from April’s low. So yesterday's profit taking reaction - reversing more than 2 days of net downside was not unexpected. But, most importantly the bounce has not yet been able to clearly sustain prices above the 100 day moving average or even approach the trend defining 13 day line. In addition, the daily Keltner channel remains trending negatively and so the bias remains to the downside despite potential for today’s move to be positive. 

So we’re advising clients to look for 1.5400/15 area to sell GBPUSD. The stop would be 1.5510 with downside potential in the next week through 1.5282 to this week's 1.5171 base and even towards 1.5090. "