GBP/USD: Shorting the bounce, target below 1.255

Market Scan: GBP/USD Consolidation

GBP/USD currently sits at 1.26254, down -0.19% on the day. We're seeing range-bound action, with the day's high hitting 1.26623, right at that 1.2662 resistance level. The overall trend is sideways, but the bearish momentum from the 24h change suggests weakness at resistance. The market is setting up for a move.

My Play: Intraday Short

I'm eyeing a short on GBP/USD. My entry is set at 1.2634, anticipating a slight retest of resistance or a breakdown from the current sideways chop. Key resistance holds at 1.2662 and 1.27. On the downside, support is at 1.26, then 1.2589. My stop is tight at 1.2678, just above that 1.2662 resistance. The trend is your friend, and I expect a push lower if resistance continues to cap gains, perhaps fueled by continued USD strength across the board.

Targets Downside

My take profit is aggressive at 1.2523, well below the 1.255 support. If we break 1.2589 decisively, that target becomes very realistic. Watching closely.