Hello Traders,
The GBP/USD pair is now back in track and mimicking the EUR/USD pair. I think this pair is going to trade higher along with the Euro/Dollar, but this is only my opinion.
My model of Program Trading shows a first target in the 1.5575 area (which was hit yesterday as the high was 1.5573). Two potential scenarios open up for the Pound (see below picture):
GBP/USD weekly timeframe August 9th 2013
Scenario 1. GBP/USD pair price could just continue higher to hit the second target in the 1.5815 area, i.e. 2nd target of the current daily setup stared at the 1.5120 area (blue line in the picture). This is the high probability scenario.
Scenario 2. Price could correct due to profit taking and shorts on the smaller timeframes into the next traditional long setup whose support area starts at the 1.5340 level and goes down into the 1.5284 level. Below 1.5284 the current upmove would be invalided.
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Fibonacci Stalking 