GBPUSD—weekly chart

GBPUSD shows a rounding on the weekly chart. This is even more pronounced on the daily chart. At first, it looked as though it could have been a J pattern or a scallop but prices since broke below the bottom of that pattern so it's unlikely to be a continuation pattern. The 1.7045 resistance was also a clue that the upward move would be unsuccessful. If the EW count is correct (bug if), the pair is finishing a correction and the next move should be down. I am short in this pair from 1.5871; it's currently at 1.5679. It's been narrowly trading the last couple of days (as have many pairs) so energy should be building for a bigger move.

Support:

1.5584
1.5535

Resistance:

1.5707/19
1.5768
1.5851

Here's the weekly chart:



© Dianne Fecteau, 2010. 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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