GBP/USD May be in For a Few More Volatile Days within the Range

DailyFX

Daily

View photo

.
eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD May be in For a Few More Volatile Days within the Range

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-GBPUSD broke the trendline that originates at the July low on 10/29. The line connects the 7/9 and 8/2 lows and crosses through several days in mid-October. This development is an early sign that the entire advance is complete.

-Weakness below 1.5893 would confirm a double top. The measured objective would be 1.5527 (width of range subtracted from 1.5893).

-A return to the upper end of the range would face resistance at 1.6115/62. Near term support is 1.5970.

Trading Strategy: As long as the range that has persisted since Oct 1 persists, it’s best to be favor range trading. Longs are favored into 1.5920/70 with 1.5890 stops and shorts are favored into 1.6160-1.6210 with 1.6270 stops. The GBPAUD trade was managed today in the following manner and that market has broken to the upside.

LEVELS: 1.5924 1.5970 1.6009 | 1.6117 1.6163 1.6207

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)