GBP/USD Short Setup

Hello all,
I thought the Sterling/USD pair is of interest. It is a key currency pair and seems to affecting quite a few of the charts. Adam said Stirling move up is strong likleyhood. Initially I was not so sure but there does seem to be support from the triangle. This is not a prop trader potential but analysing what could happen here may be informative re other chatrs which is why I bring it up for discussion.
Saj has already been quick with a response which I copy here (Thanks Saj)
Let the blogosphere know what you think. A.
PS.
Compare the Etoro Newsletter chart below too (it's on the 30 minute window)

Hi Andrew

Would you please elaborate that which set-up you are talking about? is it a Trend Reversal OR Range Based Reversal?

• RSI Divergence is absent which is compulsory check in both type of setups.
• If its Range Based Reversal then EMA's are not flat since two weeks. This compulsory check fails as well.
• If its Trend Reversal then we will consider it a pull back (phase 2), no trade.
• In order to make current bar a reversal bar (low test bar) price needs to come down a lot & then go up to make a low test bar, which I don't see

For me its a very very weak set-up, as GBP is not helping in the chart to take it up (check EUR/GBP), its the Dollar which weakening that's why its showing that it might go up but I think it will stuck up some where very near that's why we are not getting all compulsory signals. We have tripple dip recession which affected the GBP a lot & its falling in all its pairs (although they are not in our contract list).

So I think its not worth taking a trade. What everybody else think?

Regard

Saj

GBP/USD intraday: the upside prevails.

Pivot: 1.576

Our preference: Long positions above 1.576 with targets @ 1.582 & 1.585 in extension.

Alternative scenario: Below 1.576 look for further downside with 1.5725 & 1.5705 as targets.

Comment: the pair is pulling back on its support ahead of a rebound.