GBPUSD Inside Day at Trendline Warns of Reversal
Prepared by Jamie Saettele, CMT
The inside day at the trendline that extends off of the 2/8/12 and 2/29/12 high warns of a turn lower. I wouldn’t trade the GBPUSD from the short side but I’m not bullish here either. Resistance is also expected from the October 2011 high at 16165 (reinforced by trendline resistance). Worth noting is that last week’s range is considered a ‘large range’ (largest in 13 weeks). Previous ‘large ranges’ have indicated exhaustion of the underlying move. Near term structure is bearish (5 waves down from the top).
Bottom Line (next 5 days) – topping/topped?
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.