GBP/USD Trendline and Former Highs are Estimated Supports if Reached
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-GBPUSD has broken above multi-month consolidation and traded to a new high for 2013 today (previous high was on Jan 2nd at 1.6380). A measured move from the break of the range is 1.6625. This level is in line with the Aug 2011 high (1.6618).
-Possible supports are the breakout level of 1.6259. Watch trendline support as well. The line is at about 1.6310 on Wednesday.
Trading Strategy: A dip into trendline support and/or the broken support level of 1.6259 may present a long opportunity. I’ll be willing to stay bullish ‘against’ 1.6130 if an opportunity presents itself. Stay tuned.
LEVELS: 1.6207 1.6259 1.6330 | 1.6427 1.6453 1.6572
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com