Tanalys

GBP/USD Range is Largest in Over 3 Years; 1.5550-1.5600 Potential Pivot

Weekly

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: In the course of several hours Wednesday, the GBPUSD traded into the month open (1.5205) before trading 300 points higher! The range was the highest since 5/7/2010 (day after the flash crash although it should be noted that today’s range of 2.10% is in line with the 7/1/10 range of 2.09%…still 3 years ago). Today’s move is insane, but doesn’t do anything to change the long term implications from the 4 year triangle break that occurred in February. The line that extends off of the January and June highs is just above the market. If price were to trade through the June high, then the line that extends off of the 2007 and 2013 highs would come into play near 1.5800.

FOREX Trading Strategy: Shorts were out on limit on half at 1.5250 and stopped out on half at 1.5440. 1.5550-1.5600 (June top….6/6 and 6/7 closes which are high volume areas) is a level that could produce a top.

LEVELS: 1.5303 1.5391 1.5433 1.5550 1.5600 1.5644

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