GBP/USD: Should See Losses Resume Down To 1.5331-37
Ian Copsey | Nov 05, 2015 12:01AM ET
GBP/USD INTRADAY CHART
BIAS: While 1.5389-1.5409 caps, we should see losses to 1.5300-20 for a reversal higher
Resistance: 1.5389-92 1.5409 1.5430-44 1.5465-70
Support: 1.5360 1.5331-37 1.5310 1.5275
MAIN ANALYSIS: Yesterday's high stalled at the top of the 1.5438-44 range and from there we saw direct losses. While 1.5389-92 caps (allow for 1.5409), we should see losses resume down to 1.5331-37 for a correction of around 30-40 points to then resume losses towards the 1.5310 area. This is an approximate target - allow for 1.5275, although I feel this would be a bit too low...) Thus observe and confirm bullish reversal indications to then see gains resume.
COUNTER ANALYSIS: Directly above 1.5444 and 1.5496 would suggest the higher 1.5552-72 target - and even perhaps 1.5600 (although I think it's a bit too high…) A break above would suggest a stronger rally and potentially up to the 1.5630-58 area and possibly higher.
MEDIUM TERM ANALYSIS:
29th October: Yesterday's development has seen the lower 1.5238-48 area reached and appears to have completed a full correction. If so, then we should see gains re-emerge to send price higher to the 1.5528 area. From there, it would suggest a move back down to 1.5139-60.
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