GBPUSD - Sell at 1.3890 and 1.3980 this week (stop 4.4131)

The setback from January’s 19 month highs deepened last week. Sold at lower levels for a 2nd week in succession selling pressure accelerated. Losses of more than 3 ½ big figures was the most negative since October. Importantly this decline also took the currency through the 13 day mvg avg, with rallies in the latter part of the week finding sellers at that point. An imperfect Bearish Evening Star has also been formed and so our call for this week is a Sell at 1.3890 and 1.3980, last week's Marabuzo line. The risk is last week's 1.4131 open with an immediate target of 1.3723, the 4 week low. A move through that point then exposes sentiment to 1.3670, the midpoint of the weekly Keltner channel, or even 1.3458, January’s bottom.