GBP USD Posts Weekly Reversal Top

The GBP USD posted a closing price reversal top on a weekly basis whichcould be setting up the start of a minimum 2 to 3 week correction ofthe current uptrend. Earlier in the week, the Bank of England startedthe break with an announcement to add more funds to its quantitativeeasing program. Today’s bullish U.S. unemployment report helpedaccelerate the move to the downside.

Weekly Analysis

GBP USD.

The GBP USD posted a closing price reversal top on a weekly basis which could be setting up the start of a minimum 2 to 3 week correction of the current uptrend. Earlier in the week, the Bank of England started the break with an announcement to add more funds to its quantitative easing program. Today’s bullish U.S. unemployment report helped accelerate the move to the downside.

Following a prolonged move up in terms of both price and time, the GBP USD made a higher high for the week, a close below the opening and a lower close.  All of this took just inside of a major retracement zone of the 2.0396 to 1.3501 range at 1.6948 to 1.7762.

A follow-through to the downside is needed next week to confirm the reversal top.  The charts indicate there is room to break to 1.5272 if it corrects 50% of the last rally.

Weekly Chart

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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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