GBP/USD Plunges; Sell Retracement

The GBP/USD plunged sharply lower following the news that Standard & Poor’s gave the economy a negative outlook. The AAA rating is basically being threatened.  S&P also said that the U.K. debt burden may reach 100% of GDP. 

The GBP/USD plunged sharply lower following the news that Standard & Poor’s gave the economy a negative outlook. The AAA rating is basically being threatened.  S&P said that the U.K. debt may reach 100% of GDP. 

The hourly range is 1.54248 to 1.58154.  This creates a retracement zone at 1.56201 to 1.55740.  So far the market is holding this range. Breaking this range would signal the selling is greater than the buying. Look for a technical bounce to the upside to begin in this zone then be prepared to sell the rally.

If 1.55978 holds as a minor intraday bottom then look for a retracement back to 1.57066.  Stopping the rally at this point will create a secondary lower top and could attract heavy selling.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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