GBP/USD opened today with a strong downside gap of about 90 pips. That was mostly because of Britain economy downgrade by the rating agencies. Now I think the market is in oversold territory and will regain back to some extend in the next few days. For me it is stronger than the Euro. It is confirmed by the price action in EUR/GBP. This pair make a big top today and than dropped by more than 150 pips in a matter of hours.
I think GBP/USD is a surprisingly week pair, even compared to EUR/USD last decline. This almost 11% decline for the last three months is too big to reflect a real change in the economic situation in the Great Britain, so I think we will see a good correction here very soon.
The GBP/USD pair actually hit 1.5120 this evening and gives us highly bullish signal for the next few days. If you decide to buy a put now you will face a high probability to stick your trade against a major time frame trend and to lose it independently of the time frame you select. I don’t recommend you to buy any kind of PUT on this pair now. It could work but the risk is not appropriate. I thing buying CALL on deep next few day if such a deep appear will be much better bargain.