Daily Forecast For GBP/USD
Ian Copsey | Jan 21, 2015 12:00AM ET
INTRADAY CHART
BIAS: Am wary now and considering a sideways consolidation - potentially a triangle
Resistance: 1.5175-80 1.5199 1.5230-35 1.5260-68
Support: 1.5137-41 1.5115-20 1.5093 1.5074
MAIN ANALYSIS: Losses looked as if they were going to satisfy my bearish outlook but the recovery from the 1.5056 low was way too strong. I am a bit cautious as the initial recovery from the 1.5034 low wouldn't allow a complex correction. However, there does seem to be a 3-wave structure. Even so, it will be useful to have this confirmed by support around 1.5115-20. As long as this area holds and triggers gains back to the 1.5175-80 resistance area - and above - it would suggest a target around the 1.5230-35 area. Watch for bearish reversal indications for a decline to the 1.5090-95 area in the penultimate leg of the triangle.
COUNTER ANALYSIS: Working with the above template, and break above 1.5240 would challenge the 1.5268 high and potentially to the 1.5300-05 area - max 1.5320-25 for a deeper Wave (iv).
An direct break of 1.5110 would suggest a move down to yesterday's 1.5056 low and then to the 1.5034 low. Keeping in mind a possible complex correction, also note the 1.4979-00 area...
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