Tanalys

GBP/USD Engulfs Last 2 Days Trade; Outside Day to Work With

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The GBPUSD formed an outside (more on that below) . Intraday, price traded into the 200 day average and 1.5537 resistance before closing below. 1.5600 (May top and large volume area) still looms as resistance if reached as does parallel channel resistance. If price were to trade through the June high (1.5750), then the line that extends off of the 2007 and 2013 highs would come into play near 1.5800.

FOREX Trading Strategy: The market never presented the opportunity to fade a news spike into 1.5600. The outside day presents a new opportunity. New strategy is to stop in (short) at 1.5419 with a 1.5550 stop. I am not willing to play an upside break due to the big picture bearish implications from the 4 year triangle break in February…among other things.

LEVELS: 1.5207 1.5334 1.5421 1.5537 1.5600 1.5720

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