GBP/USD Trades Through April High; Focus is on Channel
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The GBPUSD roared higher following the GDP release, eliminating the 3 wave rally in the process. Bigger picture, 4 year triangle was resolved in February to the downside and I still think we should be looking to align with the downtrend. That said, we’ll probably get the chance to do so at better levels. The 50% retracement of the decline from the January high at 1.5605 intersects channel resistance next Friday.
FOREX Trading Strategy: Was stopped out of the 4/16 short entry at 1.5415. Near term, expecting higher prices in order to complete final subdivisions of the rally from the 4/23 low. Next short entry might come near 1.5605 sometime next week.
LEVELS: 1.5330 1.5370 1.5410 1.5550 1.5605 1.5688
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.