GBP/USD at Risk Following Retracement of Friday’s Action
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-GBPUSD made an outside day reversal on 1/2 after poking above 1.6600. Since 2011, the market has reverted to the mean early in the year.
-The mentioned outside day reversal along with a weekly key reversal (week that ended 1/3) warns of a top. Monday’s retracement of last week’s choppy advance increases confidence in a bearish outlook. FXTW touched on short setups in other GBP crosses.
Trading Bias: Order to go short
LEVELS: 1.6260 1.6315 1.6358 | 1.6420 1.6477 1.6516
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.