GBPUSD - close short trade

19 Jan 2016On 5 Jan 2016 we identified a level to short this currency pair. The target was at 1.4230 which we nearly reached on 15 Jan 2016. Today we see support has held following the release of Chinese GDP & retail sales data. Whilst the strengthening US dollar provides a decent tailwind for this trade, today's UK inflation data, the muted impact of Iranian oil being added to the global supply and the possibility oil may have achieved durable support at current levels means we are uncertain of this trade's progress. Traders should seek to protect profits in the trade by bringing stops closer or closing the position and waiting for confirmation of the next move. Good luck.