GBP/USD Outside Day at Trendline; Key Juncture

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eliottWaves_gbp-usd_body_Picture_9.png, GBP/USD Outside Day at Trendline; Key Juncture

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-“GBPUSD made a key reversal on 2/17. The pullback occurs after a push above the 2011 high and test of the best level since November 2009. Thursday’s high registered a few pips above the 2/17 close. The manner in which the market responded to that level is bearish.”

-“A daily key reversal at the top of a multiyear range is not something to dismiss. The longer that the market stays below the 2/17 high, the more likely it is that an important top is in place. The market needs to break (not spike intraday) 1.6580 (daily close) to suggest that the path is lower towards 1.6400.” 1.6580 has been broken. The decline is choppy so far but that can change quickly. The line that extends off of the November and February lows should offer insight regarding whether or not the larger trend has reversed. We are there now.

LEVELS: 1.6301 1.6380 1.6440 | 1.6531 1.6582 1.6653

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