Update to GBP/USD Longs on Pi Day
GBPUSD longs are starting to work. After several small range days and an impressive reaction at the 61.8% retracement of the 2009 range, price has held Tuesday's low for almost 2 days, exceeded minor resistance at 1.4920 and held minor support at 1.4892. It's tempting to get 'bigger' down here with our position but I'm staying with the process of buying reactions off of resistance. The plan from here; wait for a move to 1.5050 and buy a reaction (dip) off of that level. 1.4980 (just broken from below) is estimated support. The first target remains 1.5220 with 1.5400 and 1.5600 of interest down the road.
Pairs on the watchlist (not yet active) remain EURSEK (long), EURAUD (long...although GBPAUD might be better), and EURUSD (long).
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.