Weekly Bars

eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD Trendline Break Opens Up 2012 Lows

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREXAnalysis: The 4 year trendline is broken and focus is on the 2012 low at 15232…and potentially much lower. The short term trend is considered down as long as price is below the Monday high of 15508. Exceeding that level could trip stops up to 15570/80. Given the significance of the trendline break, one should be aggressive with objectives. The downward sloping channel is a potential reference point and measured levels don’t begin until the mid-14000s.

FOREX Trading Strategy: I wrote last update (on the 14th) that “I’d rather sell a break of a 4 year trendline than fade it. 15530/80 is resistance and the break is valid against 15690. I’m unlikely to entertain anything bullish until March.” Short term traders may wish to move risk down to 15510. Exceeding that level may offer up the next sale at 15570/80.

LEVELS: 15232 15307 15392 15508 15578 15627