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GBP/USD Trades into January 2 Close and Reverses

By , Sr. Technical Strategist
01 October 2013 22:32 GMT

Daily

eliottWaves_gbp-usd_1_body_gbpusd.png, GBP/USD Trades into January 2 Close and Reverses

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-The Jan 2nd close at 1.6252 served as resistance for GBPUSD. Keep in mind that the year to date high is 1.6380 and the measured move from the most recent range (1.6162-1.5954) is 1.6369.

-Price briefly traded above the line that extends off of the 2011 and 2013 highs (at about 1.6220).

-Weekly RSI(13) ended last week at 66. This is the highest reading since the week that ended 11/09/2007.

Trading Strategy: A drop below 1.6095 would create overlap and suggest that a top is in place. If we get that, then I’ll zoom in for an entry. Look at GBPJPY too as a drop below 157.30 could trigger a breakdown.

LEVELS: 1.5999 1.6095 1.6160 | 1.6245 1.6290 1.6369

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01 October 2013 22:32 GMT