GBP/USD Trading Around 200 Day Average
Chart Prepared by Jamie Saettele, CMT
-“After breaking above the line that extends off of the 2014 and 2015 highs, GBPUSD has reversed sharply. The move completes a head and shoulders top that’s been underway since May. The implications are bearish.”
-“GBPUSD has tested the underside of the neckline with today’s advance (9/17). If the bigger move is lower, then GBPUSD needs to roll over here.”
-“GBPUSD rolled over alright. If the larger trend is down then strength/consolidation from here will present another selling opportunity.” This is the strength/consolidation. The form that the pattern takes over the next week or so should prove useful in determining whether or not the broad move is still lower.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.