Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: “The 61.8% retracement in the GBPUSD held and price has returned to the top of the late November range. Like the EURUSD, the GBPUSD decline from the September high is corrective and the rally from 15822 is an impulse. Look lower over the course of December but with an interruption (B wave). 15940 (61.8%) and 15960 (former 4th wave) are probable supports but probably not until later in the month.” Corrective weakness may have ended Friday. Near term structure isn’t especially clear so it’s probably best to stick with the trend that has prevailed for roughly the last month, which is up. Expect near term resistance at or just below 16100.
FOREX Trading Strategy: Lack of near term clarity leaves me on the sidelines. EURGBP is actually a cleaner setup. As mentioned last week, “The euro is the mover of the EURGBP cross these days” and as such I prefer to trade the EURUSD.
LEVELS: 15961 16001 16051 16097 16130 16174