FOREX Analysis: GBP/USD Trendline Looms Just Below 16100
Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: I wrote last week that “I don’t often highlight the 50% retracement but in the case it’s instructive to do so because the 16065 is reinforced by the 161.8% extension of the 15826-15936 rally at 16059 and the 10/3 low at 16066; a holy trinity of resistance if you will. This confluence is just above the obvious 11/7 high (16042). Obvious levels are loaded with stops but also popular exhaustion areas.” Like the EURUSD, near term structure suggests additional upside.
FOREX Trading Strategy: The near term is constructive as long as price is above 15926. I anticipate turning bearish between 16065 and 16123.
LEVELS: 15864 15927 15978 16065 16090 16125
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.