GBP/USD 5 Waves Drop; Could therefore Bounce Soon
Chart Prepared by Jamie Saettele, CMT
-“The GBP/USD rally has failed at a long term parallel. The parallel is defined by the 2007-2011 trendline (off of the highs) and extends off of the 2009 high. That line has pinpointed major inflection points for years. Likewise, a move above the level would be seen as significant.” The drop from the December high is unfolding as an impulse (5 waves). The implication is that an interim low and rally attempt is due soon.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.