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GBP/USD Outside Day; Wednesday High Serves as Pivot

GBP/USD Outside Day; Wednesday High Serves as Pivot

2013-10-16 22:35:00
Jamie Saettele, CMT, Sr. Technical Strategist
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eliottWaves_gbp-usd_1_body_gbpusd.png, GBP/USD Outside Day; Wednesday High Serves as Pivot

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-A multi-week head and shoulders top was confirmed on 10/9 (that doesn’t mean it can’t fail though). The underside of the neckline was resistance along with the underside of the line that extends off of the August lows.

-GBPUSD also formed an outside day below the 21 day average (not shown). Using Wednesday’s high as the corrective recovery high (top of wave 2 or B) results in 2 equal legs from the Oct high at 1.5712 (8/21 high is at 1.5717).

Trading Strategy: Stopped out of prior short at 1.6020. Downside needs to be favored now below Wednesday high. Resistance for entry is 1.5975/95.

LEVELS: 1.5775 1.5840 1.5890 | 1.5960 1.6000 1.6057

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