The GBPUSD reversed at the confluence of the 38.2% retracement / Elliott channel resistance, which leaves the pair vulnerable to new lows.
The GBPUSD broke its diamond top last week and the trend is down against 16076. The rarity and reliability of the diamond pattern makes the break especially bearish. Given the 3rd of a 3rd count from 16464, the first Fibonacci confluence is not until 14714/62. The rally from 15533 may be a 4th wave advance. The rally reversed at Elliott channel resistance / 38.2% retracement. Favor the downside.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of [I]Sentiment in the Forex Market[/I]. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to [email protected].