GBP/USD Drop a Good Start for Bigger Reversal

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eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD Drop a Good Start for Bigger Reversal

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The rally from the March low would consist of 2 equal legs at 1.5783. Don’t lose sight of the big picture. A year triangle was broken to the downside in February and price has returned to the breakout point. In fact, the line that connects the 2009 and 2012 lows (in red on chart) is just above 1.5783 on Friday. The 61.8% retracement of the decline from the January high is 1.5788 and the November 2012 low is 1.5822.” T

FOREX Trading Strategy: The GBPUSD never made it to the mentioned levels. Near term, a drop below 1.5564 would complete 5 waves down from the top, which would present an opportunity for us to short a recovery. Expect this to setup within the next few days.

LEVELS: 1.5487 1.5548 1.5600 1.5680 1.5720 1.5783

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