Tanalys

GBP/USD Retraces Part of FOMC Drop; Short Opportunity

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “Don’t lose sight of the big picture. A year triangle was broken to the downside in February and price has returned to the breakout point.” The GBPUSD is working on an outside week reversal. This would be the first reversal from a 13 week price extreme since the week that ended 3/15 (low of the year so far). The GBPUSD is ahead of the EURUSD at this point. The GBPUSD topped in January…the EURUSD in February. The GBPUSD bottomed in March…the EURUSD in April. The GBPUSD made a high on 6/17 and the EURUSD made its high on 6/19. Near term, a drop below 1.5413 may complete 5 waves down from 1.5750 before a partial recovery next week. 1.5316/75 is estimated support in the event of a new low.

FOREX Trading Strategy: Similar to EURUSD, could head lower from here (might complete 5 waves down if that happens) which would present a better short opportunity on the next rally. BUT, given bigger picture possibilities, want to short 1.5530 with a 1.5680 stop.

LEVELS: 1.5375 1.5410 1.5482 1.5530 1.5564 1.5600

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