Tanalys

GBP/USD at Support; Favor the Range Until it Breaks

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

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.

-Weakness below 1.5893 would confirm a double top. The measured objective would be 1.5527 (width of range subtracted from 1.5893).

-A return to the upper end of the range would face resistance at 1.6115/62. A near term support zone extends to 1.5920.

Trading Strategy: “As long as the range since Oct 1 persists, favor range trading. Longs are favored into 1.5920/70 with 1.5890 stops and shorts are favored into 1.6160-1.6210 with 1.6270 stops.”

LEVELS: 1.5876 1.5893 1.5956 | 1.6030 1.6117 1.6162

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