Update for: 2011-09-19 - 2011-09-25

Posted on: Saturday, 17 September 2011 14:25


GBPUSD: 1.5786

 Short-Term Trend:  downtrend

Outlook: The decline from the Aug top has moved prices below the July's low so my confidence that wave (g) has already ended has increased (though there are still some reasons to suspect one more rally twd 1.6650 may follow). The trending conditions have also improved and they indicate the current decline is strong. Thus, despite the oversold conditions I donot expect any big bounce from here. Most likely the market will rally only to test the 1.5947 level and wil then resume its decline. The key resistance on the upside is at 1.6100/10 as a move above there will negate the current bearishness.
From a trading perspective, I favor a short positin if a rally twd 1.5947 develops against the 1.6100/10 resistance.

Strategy: Shorts favorable toward 1.5950. Stop abv 1.6110. Target=1.5260.

Next Update: Sun, 09/25/2011.


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