GBP/USD Reverses Sharply Before Well-Defined 1.5700
Chart Prepared by Jamie Saettele, CMT
-“A 6 month bottoming pattern (head and shoulders) has completed (target 1.70+) but the rate does face resistance (within an uptrend) now so be aware of a shakeout (lower) following this breakout.”
-“The ‘shakeout’ turned into a mini downtrend but the rate has turned up from above slope support (which was at 1.5300), which is bullish. The seeds for a larger advance are sewn but beware of near term resistance around 1.57.” Cable was never able to reach 1.5700 and today’s outside day is useful as a pivot (bearish below and bullish above). Look towards 1.5359.
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