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FOREX Technical Analysis: GBPUSD Corrective Rally May End above 16041

FOREX Technical Analysis: GBPUSD Corrective Rally May End above 16041

Jamie Saettele, CMT, Sr. Technical Strategist

Daily Bars

FOREX_Technical_Analysis_GBPUSD_Corrective_Rally_May_End_above_16041_body_gbpusd.png, FOREX Technical Analysis: GBPUSD Corrective Rally May End above 16041

Chart Prepared by Jamie Saettele, CMT

FOREX Observations: “The clearest pattern in recent history is the 3 wave advance from 15913 to 16174 (first day of the month high). 3 wave moves indicate countertrend moves and in this case suggest that the trend is down. Still holding 15951, additional resistance comes in at 16040.” Near term, the rally from 15957 and decline from 16042 each compose 3 waves. One possibility then is a flat in which price would exceed 16041 before the next beg leg commences.

FOREX Trading Strategy Implications: “I remain bearish. Risk is moved down to 16174 and a level of interest on the downside is the well-defined 15770 (former resistance, 50% retracement and 100% extension of decline from the top).” Risk is too great at the current juncture to get involved if not already. Exceeding 16041 however would face resistance at 16080/90 and warrant action once again.

LEVELS: 15825 15912 15951 16040 16091 16120

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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