Daily Bars

eliottWaves_gbp-usd_body_gbpusd.png, FOREX Analysis: GBP/USD Responds at 5 Day Average

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREXAnalysis: I wrote yesterday that “the GBPUSD is consolidating after reaching the November low and 50% retracement of the rally from the 2012 low. Ultimately, consolidation probably leads to additional weakness towards the nearly 4 year trendline (the line is just above 15720 this week).” It’s possible that the consolidation is complete. The width of the range can be used to pinpoint an objective. The width of the range is 91 pips, which would yield a downside objective of 15710 (15801-(15892-15801) if price breaks lower while remaining below 15892. By the same token, an upside break would shift focus to 15983 (15892+91 pips).

FOREX Trading Strategy: Risk on shorts should be moved down to 15895.

LEVELS: 15693 15777 15801 15893 15923 15955