GBPUSD Reversal Warns of False Break
Prepared by Jamie Saettele, CMT
After trading to its highest level since 11/14/11, the GBPUSD retraced a sizeable portion of Monday’s gains. The sharp drop from 16000 is unfolding as an impulse (5 waves) which warns of additional weakness in the coming days. The extreme divergence with RSI on the daily (extreme in that RSI is not even close to 70) is suggestive of a more important top.
Bottom Line (next 5 days) – sideways/lower?
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