GBP/USD Estimated Resistance is at 1.5490

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eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD Estimated Resistance is at 1.5490

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Don’t lose sight of the big picture. A 4 year triangle (see next chart) was broken to the downside in February and price has returned to the breakout point. The GBPUSD completed an outside week. This is the first reversal from a 13 week price extreme since the week that ended 3/15 (low of the year so far). The GBPUSD is ahead of the EURUSD at this point. The GBPUSD topped in January…the EURUSD in February. The GBPUSD bottomed in March…the EURUSD in April. The GBPUSD made a high on 6/17 and the EURUSD made its high on 6/19. So it makes sense that the GBPUSD would fall apart before the EURUSD does. 5 waves down are visible from the high but when the GBPUSD turns, it tends to go quickly so beware of looking for a deep 2nd wave rally that never materializes. 1.5490-1.5529 is resistance.

FOREX Trading Strategy: If not already short, wait for 1.5490-1.5529. Stop above pre-FOMC high of 1.5680.

LEVELS: 1.5319 1.5343 1.5413 1.5490 1.5530 1.5564

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