Weekly Price Action Supports Daily Turn in GBPUSD
The mid-month rally in GBPUSD fell just short of the September high at 167.41 before falling off sharply last Friday, following a much weaker than expected Brit GDP reading. Last Friday’s turnaround did a good bit of technical damage to GBPUSD, leaving a shooting star on the Weekly chart — see circle on left chart below — which supports the bearish benchmark candle left on the daily chart. Potential resistance lies overhead at 165.00, the midpoint of last Friday’s range.
The Monthly trend for GBPUSD remains higher, with a close below approx 160.00 needed for a shift south. Chartists may also recognize what could be a Head & Shoulders price formation on the Weekly chart below.
Jay Norris
www.trading-u.com
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