GBP/USD at Trendline Support; Resistance is Now 1.6000-1.6020

DailyFX

4Hour

View photo

.
eliottWaves_gbp-usd_1_body_gbpusd.png, GBP/USD at Trendline Support; Resistance is Now 1.6000-1.6020

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-The Jan 2nd close at 1.6252 nailed the high so far, which came in at 1.6259. Resistance is reinforced by a 4 year resistance line.

-A key reversal week (new high and close below prior close) unfolded last week and EURGBP (see 2 Friday’s ago) technicals are favorable for a more important top forming in GBPUSD.

-A head and shoulders top has been confirmed. Underside of the neckline (red) is now estimated resistance along with former lows from 1.6000-1.6030.

Trading Strategy: Market has found a trendline and channel support confluence. This is a good place for a rally to begin. Looking to short 1.6030 with a 1.6075 stop. Target areas are 1.5715/50 and 1.5605. GBPAUD and GBPNZD are shorts on strength into 1.6950 and 1.9300 as well.

LEVELS: 1.5774 1.5840 1.5875/85 | 1.5985 1.6005 1.6031

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)