GBP/USD Rate of Change already Largest Since November 2010
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: The GBPUSD blasted through everything on Thursday and now faces parallel channel resistance. Another point of interest is the 2/7 large volume (CME) close at 1.5711. The rally from the March low would consist of 2 equal legs at 1.5783. CME volume on Thursday was the largest since the day after the 2010 flash crash (May 7) (possibility of capitulation). Don’t lose sight of the big picture. A year triangle was broken to the downside in February and price has returned to the breakout point.
FOREX Trading Strategy: Same deal as EURUSD here…want to be short but need the market to show something before committing. An inside day or key reversal tomorrow would do the trick.
LEVELS: 1.5375 1.5433 1.5510 1.5711 1.5783 1.5844