British Pound Reversal Continuation-Support at 15500
60 Minute Bars
Prepared by Jamie Saettele, CMT
Zoom out and view the last few years’ of price and it becomes apparent that the recent low is strong support. The area just above 15300 was a double bottom in late 2010 and congestion in early 2010 (today’s low is 15270). What’s more, RSI is at its most oversold reading since early 2010. A multi-month rally ensued before the GBPUSD fell to new lows. I can envision something similar here. I wrote yesterday that “I am more of the mind that a low will form as quite often happens following a ‘news’ announcement (announcement of BoE expanding asset purchase plan).” The GBPUSD has already reached 15578 (previous pivot high) and a reaction would see support from 15500 and 15460.
Trend Strength (M,W,D) – (1), (1), (1)
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