Price & Time: Top in GBP/USD?
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GBP/USD has undergone a fairly steady rise over the past weeks. Last week the exchange rate finally managed to push through the January extremes to record a new high for the year at 1.6441. However, a convergence of several short-and medium-term cycles over the next couple of days warns that some sort peak could be on the horizon for Cable. Complicating the matter somewhat from a trading standpoint is the fact that November US Employment Data is slated for Friday at 8:30 est and volatility is likely to rise in the aftermath of the event. While the 1.6441 level could provide resistance on any spike higher we prefer to try to position closer to 1.6600 given a convergence of Fibonacci and Gann levels there.
GBP/USD Daily Chart: December 5, 2013
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risks in Coming Sessions:
LEVELS TO WATCH
Resistance: 1.6441(YTD high), 1.6500(Gann/Fibonacci)
Support: 1.6300 (Psychological), 1.6255 (Gann)
Strategy: Sell GBP/USD
Entry: Sell GBP/USD at 1.6490
Stop: 1-day close above 1.6500
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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