British Pound Consolidating-Awaiting a Break
Prepared by Jamie Saettele, CMT
The GBPUSD has traded sideways for the last 3 days and was finally able to muster a negative close (close < open) following 10 consecutive up days. “My open/close data extends to 1998 and since then there have only been 3 other instances in which the GBPUSD has rallied for 9 consecutive days (never 10), 12/1/04, 8/3/10, and 1/19/11. In all 3 instances, the GBPUSD fell at least 200 pips within the next 6 days (from close of the 9th day to the lowest point).” Don’t dismiss the potential for a test of the December high of 15775 before a larger decline back towards 15530.
Bottom Line – flat
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.