GBP/USD Weekly technical Outlook

14 November 2009 @ 12:08 pm EDT

GBP/USD's break of 1.6750 resistance last week indicates that fall from 1.7043 has completed with three waves down to 1.5706 already. The three wave structure in turn indicates that whole medium term rise from 1.3503 is still in progress. Retreat from 1.6841 should have completed at 1.6516 after drawing support from the near term trend line. Initial bias will be on the upside this week for 1.6841 first. Break will target a retest on 1.7043 resistance. On the downside, though, below 1.6516 will argue that whole rise form 1.5076 has completed. Further break of 1.6261 will confirm and turn outlook bearish.

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