GBP/USD at Former Trendline Resistance Turned Support
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“GBPUSD has dropped under the May low, reached the 200 day average, and is working on its 6th consecutive weekly decline for the first time since June 2010. It’s been well-documented that extremely high volume tends to occur near or at a market turn but extremely high volume has also ‘kicked-off’ a number of moves, including 8/7/2013.” The GBPUSD turned up just shy of the 50% retracement (1.6000).
-Major resistance is seen from the 50% and 61.8% retracements at 1.6621 and 1.6755. These levels bracket the 200 DMA.
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