Tanalys

GBP/USD Big Outside Day Reversal Unfolds

4Hour

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote last update that “despite the reversal, a new low isn’t out of the question from current levels in order to complete 5 waves down from 1.5321 (price would then be at risk of a recovery back to 1.5321). If price rallies from above the low, then would begin looking for a top at 15260-1.5320.” That new low occurred last night so it’s possible that a correction of the decline from 1.5606 is underway. The most likely stopping point for the advance is 1.5322/77 (former 4th wave and 61.8% retracement).

FOREX Trading Strategy: Evidence (outside day reversal at an important level and a mature wave pattern) suggests a turn but strange things can happen at month end. In other words, don’t completely dismiss another low.

LEVELS: 1.4901 1.5007 1.5070 1.5156 1.5260 1.5322

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