GBP USD Reversal Top Still Intact

The July 23rd closing price reversal top at 1.6585 in the GBP USD was confirmed late last week with a follow-through break on Friday.  Whether this market will change the trend or not to the upside depends on the strength in the stock market.

Daily Analysis

GBP USD

The July 23rd closing price reversal top at 1.6585 in the GBP USD was confirmed late last week with a follow-through break on Friday.  Even though this market has not continued the developing break today, this chart is now beginning to show the possibility of a secondary lower top which could mean the start of a sizeable correction to at least 1.6284 over the short run. 

Throughout today’s trading session, the British Pound has succeeded in establishing support inside of a retracement zone at 1.6452 to 1.6352.  Look for weakness to develop under the low end of this range.  The reversal top will be negated and the main trend will turn up on a trade through the last swing top at 1.6585.  Whether this market will change the trend or not to the upside depends on the strength in the stock market.

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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