gbp-usd

The GBPUSD has been in a consolidation mode since late May. Price has traded in a wide 1300 pip range since then in what could be corrective (continuation of strength) or distributive (reversal of strength). Structurally, movements since 1.7050 appear corrective (3 waves), which would suggest a triangle, flat, or leading diagonal (all patterns favor lower prices from here). The support line mentioned in recent days has been broken and gives scope to further losses. A break below 1.6250 is expected with 1.6880 remaining intact. Focus then shifts to 1.6130 and 1.6030. 1.6550/80, 1.6600 and 1.6680 are short term resistance levels.

Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum.  He is the author of Sentiment in the Forex Market.  Follow his intraday market commentary and trades at DailyFX Forex Stream.   Send requests to receive his reports via email to jsaettele@dailyfx.com.

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