Daily GBP USD Pattern, Price & Time Analysis
The GBP USD main trend is down on the daily chart. Because of the prolonged move in terms of price and time from the last main top at 1.6130 on November 8, the market could be setting up this morning for a short-term closing price reversal bottom at 1.5422.
Although this pattern can produce a 2 to 3 rally back to at least 50% of the previous down move, it does not mean the trend is changing to up. Based on the swing from 1.6130 to 1.5422, if a closing price reversal bottom is formed then traders should look for a possible counter-trend rally to 1.5776 by November 29 – 30.
The key word is “if” because we haven’t seen the reversal bottom yet. Trading conditions are ripe for the reversal but the market has to close higher at a minimum. Furthermore, there must be a follow-through rally on Monday for the projected retracement to take place. Otherwise, traders should use the slow-moving, uptrending Gann angle at 1.5451 for guidance.
