GBP/USD one to watch?

The GBP/USD (cable) has had a 3 day bull run and gained 350 points against the USD since Wednesday, above the psychological 2.0000 level the bulls look confident. With the US interest rate cut debate going on its not surprising that the bulls have taken control. However from a technical point of view cable is running into potentially some good resistance points. First off is the downward trend-line from the all time highs of 2.0650 through 2.0455. This trend-line could now come into play at 2.0160 level. Second off is the fibo swing from the all time high of 2.0650 to the low of 1.9648. The 50% retracement is at 2.0150. Going against the trend on this pair is normally a "no no" however as pointed out above there are some good technical reasons to go short at these levels. There may also be some bulls looking to cash in their long positions before the end of the month so there could be some natural selling going on. The stop-loss I would personally put on this trade would be above the 61.8% fibo level at 2.0270 and the target could be back in the direction of 1.9900 and lower.

UPDATE: 29th of August 2007. The GBP/USD has indeed dropped off 180 points since Sunday night.