The GBPUSD reversed from just below the 61.8% retracement of the 2009 range (1.3500-1.7042) yesterday. Weakness from 1.5221 has taken the form of a wedge (ending diagonal) with a slight throwover (quick drop below the wedge support and reversal). Reversals from wedges are often quick and the target is the origin of the pattern (in this case 1.5221). The near term picture is constructive.
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.