GBP/USD at Support; Favor the Range Until it Breaks

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eliottWaves_gbp-usd_body_gbpusd.png, GBP/USD at Support; Favor the Range Until it Breaks

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-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. A near term support zone extends to 1.5920.

Trading Strategy: “As long as the range since Oct 1 persists, 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.”

LEVELS: 1.5876 1.5893 1.5956 | 1.6030 1.6117 1.6162

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