Tanalys

GBP/USD Recent Action Similar to June Topping Process

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: 6/6 and 8/7 were both large volume days. After 6/6, price grinded into a top that was made on 6/17. Since 8/7, price grinded higher into a top that was made Wednesday. Yesterday’s comments remain valid – “The GBPUSD key reversal at important resistance warns of a turn. Remember, the rally would consist of 2 equal legs from the July low at 1.5722, which is also the close of the high day in June.” Wednesday’s high was just several pips below 1.5722. If price trades above the June high of 1.5750, then the 61.8% retracement of the Jan-March decline comes in at 1.5788 and the November 2012 low at 1.5826.”

FOREX Trading Strategy: The GBPUSD has led the EURUSD at most turns in 2013….so the GBPUSD top might be ‘safer’ than the EURUSD top. The 3 and 5 day rolling pivots are at 1.5622 and the close of the high day is 1.5655. This zone is resistance.

LEVELS: 1.5422 1.5474 1.5560 1.5622 1.5655 1.5690

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