GBPUSD – The wave [c] recovery is likely to extend above 1.5910
GBPUSD is appeared to be in a multiyear triangle formation between 1.7000 and 1.4200. Current down leg started from 1.6300 (April high) is still in force. The corrective wave B started from 1.5265 (June low) could test the 1.600/1.6125 resistance before turning lower (watch the Apr’11 trendline resistance). A break below 1.5490/1.5265 would renew bears for 1.5000/1.4800. A reversal above 1.6100/1.6300 is needed for medium term bulls to take control.
The pair appears to be in a wave [c] of B. It is consolidating in the near term with upside focus on 1.5910. A break above could test the tough 1.6000/1.6125 resistance before failing. Near term weakness looks to hold above the 1.5745/1.5635 support. A reversal below 1.5635/1.5490 however dampens recovery and retests the key support zone at 1.5390/1.5265 initially.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)
