Daily Bars
Prepared by Jamie Saettele, CMT
The similarities between 2011 and 2012 are striking. An overlay of the 2 years’ price history reveals a nearly identical pattern. In both cases, RSI exceeded 70 at the end of April as well. I’m not sure what to make of the similarities other than it seems too obvious for this to remain in place much longer. If the pattern breaks, then the GBPUSD would head higher towards the trendline that extends off of the 2009 and 2011 highs above 16500. Supports are 16150 and 16060/80. (note-red dots on chart indicate when RSI > 70).
Bottom Line (next 5 days) – ?
