Tanalys

GBP/USD Holds 50% Retracement and Finishes on Highs

240 Minute Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The GPBUSD low today of 1.5032 was 13 pips below the 50% retracement of the rally from 1.4831. Focus is again on a break through 1.5259 for a larger correction of the decline from the January high. The congestion zone prior to the 2/20 decline of 1.5415-1.5550 is of interest. The rally from the low would consist of 2 equal legs at 1.5461. Near term support is 1.5157/92.

FOREX Trading Strategy: Wrote yesterday that “while I see a larger correction towards 1.5400+ as probable, more immediate bearish possibilities are possible. With the rally from the March low failing at the 2012 low, I was quick to pull the trigger on longs at 1.5090. We can always get back in if conditions warrant.” The trade isn’t as clean as EURUSD but longs should be favored above today’s low.

LEVELS: 1.5032 1.5090 1.5192 1.5259 1.5320 1.5415

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