GBPUSD Unchanged Following Friday’s Large Range

DailyFX

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eliottWaves_gbp-usd_body_gbpusd.png, GBPUSD Unchanged Following Friday’s Large Range

Prepared by Jamie Saettele, CMT

I’ve focused on the importance of 16300, the 2010 high and April 2012 high, in recent weeks and it’s clear that the level remains important. Friday’s bar constitutes a large range bar (JS Thrust bar), which is useful as a tool in identifying important reference points. The last JS Thrust bar occurred on 7/26; that low was never broken. It’s possible that Friday’s bar provides the same reference point for going short. Resistance is 16180-16225. Weakness probably doesn’t reach strong support until 15900/10 (38.2% retracement and 8/23 high). A break below 16070 would warrant a bearish breakout strategy although Cable may not be in play until Thursday.

LEVELS: 15880 15959 16070 16175 16256 16309

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