Weekly Bars

eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD Holding Lows as Range Tightens

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The GBPUSD opened lower Sunday night but the open proved to be the low! That alone is constructive but the level that produced the low (15071) is in ‘no man’s land’. The longer term trend is probably down towards the 2009 low at 13500 but a rally back to 15320 or even 15400 would fit within the confines of a normal corrective advance. I’m unsure of that rally comes from here or from 14950 (channel and pivot from July 2010).”

FOREX Trading Strategy: Although I’m looking for a low, trading from the long side is dangerous given the inability to close above the 5 day average. In strong trending markets, the 5 day average is useful as a point of reference.

LEVELS: 14885 14947 15070 15270 15320 15415