So the GBPUSD went out on it’s own this morning, racing to 7 day highs.  In the run up it gave traders a reprieve from the choppiness that prevailed in the London session.

Well, that was short lived. The price has fallen back below the opening levels and London morning high. It has fallen below the 38.2% of the surge higher at the 1.56947 and is now below the midpoint of the days range at 1.5680.  No trust = No like. 

The next target is 1.5657-64 which is 38.2% of the move up from Friday’s low and trend line support.

For me, when a market starts to do things like the GBPUSD, I will be a casual observer of the fight but will not get too close so as to be drawn in by a flying left hook or thrown bottle.  Let the fight continue, but don’t get me involved.    For those who cannot resist, be patient. Define risk. Limit risk.  I would be inclined to use 1.5700 as a level to stay below.