Tanalys

GBP/USD-Keep 1.5630 in Mind with Bank of England on Deck

Daily Candles

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The GBPUSD went parabolic for an hour this morning before failing just before the high. Perhaps the rally into 1.5591 was just a stop run but in the event of a positive reaction to BoE tomorrow, I’m still looking for a top. Keep the 2/5 low at 1.5630 in mind. Recent comments also remain valid. “There is no certainty in market analysis or trading but this is a perfect place for a top. The 50% retracement of the decline from the January high, channel resistance and internal trendline that dates to September 2012 are a formidable barrier. When considering the break of the 4 year triangle (red line on chart is former triangle support) in February, it is possible that an incredibly important top is in place at the May 1 high. Even if a top of importance is in place, there will be bounces along the way…especially in the early going.”

FOREX Trading Strategy: Wanted to see price overlap with former high at 1.5411 before BoE to have a better idea that a top is in place so I’m flat heading into tomorrow. Bias is still short though and looking for a sale into 1.5630 with a 1.5700 stop.

LEVELS: 1.5320 1.5420 1.5483 1.5629 1.5688 1.5750

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