Important Timing Relationship Ahead In the Pound
The 61.8% retracement in time of the July 2014 - April 2015 decline earlier this week failed to elicit much of a response from GBP/USD. Focus now turns to the first part of next week as it marks a convergence of several key geometric timing relationships including the 261.8% extension of the time between the April and June lows, the 161.8% retracement of the time between the April low and June high and the 61.8% extension of the time between the June and August highs. This confluence of different timing relationships increases the possibility of a reversal in my view and key levels of focus for me heading into the window will be the 61.8% retracement of the April – June advance at 1.5085 and the median line of the June high near 1.5045. The 1.4880/60 area also looks like a potentially important support area as well if the decline gets more aggressive into the timing period.
Looking to buy GBP/USD around the support levels mentioned early next week (Tuesday).
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