U.S. Markets open in 2 hrs 55 mins

FOREX Analysis: GBP/USD Trendline Looms Just Below 16100

Jamie Saettele, CMT

Daily Bars

FOREX_Analysis_GBPUSD_Trendline_Looms_Just_Below_16100_body_gbpusd.png, FOREX Analysis: GBP/USD Trendline Looms Just Below 16100

Chart Prepared by Jamie Saettele, CMT

FOREXAnalysis: I wrote last week that “I don’t often highlight the 50% retracement but in the case it’s instructive to do so because the 16065 is reinforced by the 161.8% extension of the 15826-15936 rally at 16059 and the 10/3 low at 16066; a holy trinity of resistance if you will. This confluence is just above the obvious 11/7 high (16042). Obvious levels are loaded with stops but also popular exhaustion areas.” Like the EURUSD, near term structure suggests additional upside.

FOREX Trading Strategy: The near term is constructive as long as price is above 15926. I anticipate turning bearish between 16065 and 16123.

LEVELS: 15864 15927 15978 16065 16090 16125

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.