GBPUSD—Monthly

Cable is nudging up against a long-term downtrend line from the end of 2007. It also appears to have broken above a triangle but this looks premature to me—it may be a fake-out.

I'm leaning towards regarding the monthly price action as an ABC correction. The C wave would be .618 of the A wave at 1.6324. The pair achieved 1.6330 yesterday so we'll see. The C wave would equal A at 1.7619 so there's plenty of time to get in on that train if indeed it looks as though it's going to happen.

Monthly support is at 1.6142, 1.5963, 1.5898, 1.5764, 1.5527, 1.5405, and 1.5345. Monthly resistance is at 1.6386, 1.6496, 1.6879, and 1.7045.

Here's the monthly chart:










© Dianne Fecteau, 2011. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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