GBP/USD Pre-Fed Level from Last Week at 1.5970 is Key

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eliottWaves_gbp-usd_1_body_gbpusd.png, GBP/USD Pre-Fed Level from Last Week at 1.5970 is Key

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-GBPUSD made an inside day at resistance last Thursday following the largest one day advance since 7/1/10. After such an extended move, an inside day serves as a turn warning.

-The line that extends off of the 2009 and 2010 lows serves as an impediment to gains but the next possible resistance is the line that extends off of the 2011 and 2013 highs at about 1.6225 and the January 2nd close (high of the year…first trading day of the year) of 1.6252.

-Keep an eye on the pre-Fed level of 1.5969. Weakness below there would be a bearish development.

Trading Strategy: Flat right now but monitoring for more evidence of a top.

LEVELS: 1.5775 1.5885 1.5969 | 1.6100 1.6180 1.6252

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