Tanalys

GBP/USD Inside Day after the Largest Rally in Over 3 Years

Weekly

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

GBPUSD made an inside day at resistance following the largest one day advance since 7/1/10. After such an extended move, an inside day serves as a turn warning.

The line that extends off of the 2009 and 2010 lows serves as an impediment to gains but the next possible resistance is the line that extends off of the 2011 and 2013 highs at about 1.6225 and the January 2nd close (high of the year…first trading day of the year) of 1.6252.

21 day RSI is at 75. This is the highest reading since early June 2009.

Trading Strategy: Flat right now but monitoring for more evidence of a top (intraday pattern).

LEVELS: 1.5775 1.5885 1.5970 | 1.6100 1.6180 1.6252

Exit mobile version