Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-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.
-The rally from 1.5853 is beginning to slow in terms of momentum. Recent dips are overlapping with prior peaks. This is a warning that the move may be nearing its end.
Trading Strategy: “1.6160-1.6200 is big resistance. I’ll be watching the market closely if that level is reached for a short setup.” The key reversal from Wednesday has been completely retraced. The market is not acting in a bearish manner although a Friday melt up (stop run) could lead to a short opportunity.
LEVELS: 1.6006 1.6071 1.6118 | 1.6177 1.6207 1.6259
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com