Update for: 2011-03-07 - 2011-03-13

Posted on: Sunday, 06 March 2011 13:28

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GBPUSD: 1.6266

 Short-Term Trend:  sideways

Outlook: The previous Ending Diagonal pattern in wave C has been negated with last week's price action. The fact however, that the British pound remains below the 1.6380 level makes me feel this pair is not ready for a big move higher. Most likely after some hesitation between 1.6030 and 1.6380, the market will undergo a deeper pullback twd 1.55 level as shown on the chart above. Wavewise, we think a Diametric is developing in wave C. A decline below 1.6030 will be a strong signal that wave (f) of this Diametric is already under way.
On the upside, a sustained move abv 1.6380 is not expected at this stage....

Strategy: Shorts favorable on break of 1.6027. Stop=160 pts. Target=1.5526

Next Update: Wed, 03/09/2011, 09:00 - 10:00 CET