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GBP/USD Reverses at Retracement after 6th Consecutive Up Day

By , Sr. Technical Strategist
01 May 2013 22:51 GMT

Daily Candles

eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD Reverses at Retracement after 6th Consecutive Up Day

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “Bigger picture, a 4 year triangle was resolved in February to the downside and I still think we should be looking to align with the downtrend. That said, we’ll probably get the chance to do so at better levels. The 50% retracement of the decline from the January high at 1.5605 intersects channel resistance on Friday.” The GBPUSD reached the 50% retracement today and reversed. Of note is the fact that this is the 6th consecutive up day. The last such occurrence was 10/17/12. The occurrence before that was almost exactly a year ago when the GBPUSD saw a 10 day run to the upside before plunging throughout May.

FOREX Trading Strategy: Was stopped out of yesterday’s attempt. A short term wedge (ending diagonal) break leaves me short against the high with a 1.5420 target. Catching turns is (obviously) difficult but worth it when it works. Position sizing is key…

LEVELS: 1.5333 1.5418 1.5467 1.5605 1.5688 1.5788

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01 May 2013 22:51 GMT